Costa Rican-Owned BCT Bank is in the Eye of the Storm in Panama

The Public Prosecutor’s Office is conducting an investigation into possible money laundering crimes against the economic order and has held talks with Costa Rican judicial authorities.  On June 10, the Public Prosecutor’s Office, through the Second Specialized Prosecutor’s Office against Organized Crime, requested legal assistance from the Attorney General of Costa Rica, seeking information about Costa Rican businessman Leonel Baruch and two companies: Latam Asset Management Inc. and Baruch Holding SA, both incorporated under Panamanian law.  In its legal assistance, the Second Prosecutor’s Office against Organized Crime indicates that the investigation began with the report dated April 14, 2025, which revealed that Baruch is being investigated in Costa Rica for alleged tax fraud, causing damages of approximately $11 million. 

The potential tax fraud involved a scheme involving several legal entities domiciled in Costa Rica, to which more than $60 million was transferred under false obligations to companies domiciled in Panama, companies owned by Mr. Baruch, according to the document sent to Costa Rican authorities.  According to the legal assistance requested by Panama, the Costa Rican Public Prosecutor’s Office emphasized that this “financial scheme generated tax implications.” When the company in Costa Rica pays interest to the Central Bank of Panama (BCT), a “financial shield” is created that benefits Costa Rican companies. Furthermore, the transfer of profits from Costa Rican companies to Panamanian entities “allows the resources to be distributed among partners without incurring tax on dividends in Costa Rica.” 

The report also states that, “after a series of analyses carried out at different times, it was observed that the studies conducted on April 1, 2015, as well as the analysis of the most recent transactions in 2023 and December 2024, present the same modus operandi related to the tax fraud reported to the Ministry of Finance in Costa Rica,” states the legal assistance sent to Costa Rica on June 10.  On May 8, the Panamanian Public Prosecutor’s Office also sent Costa Rica another series of information related to the investigation. The document, which news reporters also had access to, identifies businessman Baruch as the ultimate beneficiary of the bank account at BTC Panama with current fixed-term deposits totaling $12.9 million. 

The May 8 note, signed by Panama’s senior prosecutor for international affairs, José Candanedo, indicates that within the framework of the investigation, “term deposits totaling at least $12,960,227.14 have been identified in the BTC Panama account of Latam Asset Management Inc., whose ultimate beneficiary is Leonel Baruch.”  “Consequently, in accordance with Article 18 of the United Nations Convention against Transnational Organized Crime, we are spontaneously transmitting information contained in the previously reported local investigation to be used as notitia criminis or to enhance an ongoing investigation,” stated Prosecutor Candanedo in his communication with the Costa Rican correspondent prosecutor’s office. 

On June 24, Candanedo informed Attorney General Luis Gómez of the results of his virtual meeting with prosecutor Maricel Gómez Arias of the Costa Rican Office of Technical Advice and International Relations (OATRI) regarding the spontaneous transmission of information in this investigation. At this meeting, Candanedo reported that he was accompanied by Senior Prosecutor Isis Soto, while on the Costa Rican side, prosecutor Gómez was accompanied by two representatives from the Economic, Tax, and Customs Crimes Prosecutor’s Office, Selena Salas and Yorleni Matamorros, as well as Warner Molina, Costa Rica’s Money Laundering Prosecutor. 

The Costa Rican side confirmed receipt of the information sent by Panama, but stated that the documentation cannot be attached to the case they are already pursuing under number 2270-21 PE for the alleged crime of fraud against the Costa Rican Treasury, because the period of the events under investigation is from 2008 to 2015.  They also stated that the information cannot be used to initiate another money laundering investigation because the existence of a prior crime in Costa Rica has not been proven.  “Costa Rican officials indicated that the documents will remain in the possession of the Costa Rican Attorney General for review,” Candanedo informed the Panamanian Attorney General. 

Sources linked to the investigation in Costa Rica spoke with news reporters and questioned the inaction of the country’s Public Prosecutor’s Office in this case.  “They’re practically throwing away all the research that Panama has conducted,” the source complained.  While sources on the Panamanian side said that between March 2023 and January of this year, the bank made internal transfers, the supporting documentation for which was not provided to the authorities investigating the entity.  Nor did it submit documentation supporting international transfers made between March 2023 and March 2025.  Authorities are tracking a series of transfers to companies and accounts belonging to businessman Baruch. 

The Dean contacted the bank to obtain its version. It was reported that all information is channeled via email, and although concerns were submitted, there was no response at the time of writing.  This case has made headlines in Costa Rica due to the investigations conducted by the neighboring country’s Ministry of Finance into possible “tax evasion” by businessman Baruch, who recently sued Costa Rican authorities, including President Rodrigo Chaves.  Businessman Baruch asserted that neither he nor his companies have participated directly or indirectly in money laundering or tax evasion, according to a publication in the online newspaper El Observador.  https://observador.cr/