Bank in eye of Virzi storm suspended

THE SUSPENSION of the operations of Banco Universal, was ordered on Friday June 5, by Panama’s Superintendency of Banks..

Universal is   owned by the family of Felipe “Pipo” Virzi who is currently under investigation for money laundering and offences against public administration.

The bank has figured prominently in published reports of other activities under investigation by Anti-corruption prosecutors and in relation to the Financial Pacific scandal,

The Superintendency will take over administrative and operational control of the bank for 30 days, according to a resolution signed by Banking Superintendent Ricardo Fernández. Jaimie Gamboa has been appointed  as acting administrator

Fernández said that an inspection of the bank found “a high degree of weakness,” which prompted the decision. The problems included a state of fragile financial viability, weak risk management, inadequate internal controls and management issues related to the board of directors. He said the action was taken to protect investors.

The bank has 272 employees in 11 branches with accumulated deposits of $296 million. It has 22,400 accounts of less than $10,000, which represent a total of $13 million in deposits. It has liquid assets of $56 million.

The Public Registry, shows the bank’s directors as José Virzi López (president and legal representative), Elvira Virzi Vallarino, Gabriel Barletta De la Guardia, Joseph Virzi Saint Malo and Manuel Moralez Diez, who all have connections to “Pipo” Virzi. The other directors are Ofelia Méndez Moreno, Alberto Jose Paredes Villegas and Dora Pérez Balladares.

The Superintendency said the case is isolated, and Panama’s overall banking system is strong.

The bank has rejected the action, saying that it has been operated properly and with transparency.

“We have always operated within the laws and regulations of Panama,” the bank said in a statement issued at 6.15 n Friday evening reports La Prensa.