Panama slammed on multiple fronts by U.S. State Department

No need to wait for Wikileaks this time. Panama has taken a  public hammering straight from the U.S. State Department.

A report released Thursday, March 3, focused on corruption, money laundering, drug trafficking, the justice system and the country’s weak naval and air service.

It comes at a time when the government has been hoping for the U.S. Congress to move forward on ratifying a Free Trade Agreement.

"The Government talks about combating corruption, but no one has been convicted. Banking laws do not apply," the report said. "The Panamanian justice system remains susceptible to the corrupt influences of the drug trafficking organizations."

 The report said Panama has seen an increase in money laundering and drug trafficking activities.

In a statement that minimizes the frequently promoted "major hits" on drug trafficking,  the report continues: "The traffickers use the coasts of Panama and its transport infrastructure, including its port facilities, the Pan-American Highway and Tocumen International Airport to facilitate the movement of illicit products."

The report also said that the country's financial services industry attracts people "who know how to use financial and trade accounts for money laundering." It pointed out that Panama still allows the use of bearer shares, and enforcement is lax.

The national air and naval service Senan, which recently started using American drones to monitor drug trafficking was criticized for its "institutional weakness and corruption.”

A case currently under investigation revealed drug trafficking influence inside the Attorney General’s office, and a Wikileaks report said that the former American Ambassador, Barbara Stephenson, believed a high ranking government official was linked to drug trafficking.