No credit/debit cards accepted in Felix stores

THE EFFECTS  of the inclusion of 68 companies of the Waked family on the  Clinton List of companies for having laundered drug money have already  sent sales plummeting in some retail outlets which can no longer accept US based credit cards.

T he impossibility of having any kind of commercial relationship with companies in the United States, the first effect of the inclusion on the list, already has had consequences for the operation of some of the companies.

Several banks and credit card companies have already cut ties to businesses such as Felix B. Maduro, the iconic  department store that has a number of locations around Panama City that were only recently acquired by the Waked group in a surpise takeover.

On Saturday, May 7, the stores placed signs telling  customers that it would only accept payments in cash, check, cards issued by the store or gift cards. Credit or debit cards are no longer accepted.

Credit card users in the groups Riviera’ stores, or in Colon Free Zone outliers were also out of luck.

The inclusion in the Clinton list also had immediate consequences for Balboa Bank & Trust and Balboa Securities, companies in which Nidal Waked, nephew of Abdul Waked, arrested in Bogota  is a shareholder and a member of the Board of Directors.

The Superintendency of Banks and Superintendency of Securities took administrative control of the respective entities to safeguard the funds of clients, which in the case of the bank totaled $480 million at the end of 2015.

The Fitch rating agency downgraded the rating of the bank to D from BBB-. This is a consequence of the takeover and suspension of the operations of the bank. If the bank was to resume activity, typically the agency would raise the rating reports La Prensa.

The Superintendency of banks said that “this is an isolated fact, without consequences of contagion in the rest of the national banking system.”

Wisa businesses will also see effects in their relationship with insurance companies.

The Superintendency of Insurance and Re-insurance approved new measures in 2015 to prevent money laundering, which included provisions for companies included on a national or international list on money laundering.

This may cause companies to have to sever their ties with Wisa, or perform enhanced due diligence before continuing their relationship with the company, says La Prensa