Serious Violations Detected: IPACOOP Cancels the Legal Status of Panama’s Credit Union ‘Suntracs’
According to Ipacoop, the resolution was adopted after exhausting due process and analyzing the defenses presented by the cooperative, which were deemed insufficient.
The board of directors of the Panamanian Autonomous Cooperative Institute (IPACOOP) in charge of all Credit Unions and Cooperatives in Panama decided to cancel the legal status of the Suntracs Multiple Services Cooperative, RL. IPACOOP found that Suntracs had committed serious violations that compromise the transparency and integrity of the Panamanian cooperative system. Throughout this period, multiple irregularities were detected, which Suntracs was unable to refute, either through defenses or through reconsideration or appeals. The final resolution was announced through document DE/AL/N.079/2025, which remains in force. Below is a further update.
Suntracs is no longer a Cooperative: Ipacoop Cancels its Legal Status Due to “Risks to the Financial System”
Ipacoop also noted that the cooperative operated without functioning bank accounts, was operationally and financially dependent on the Suntracs union, and excessively concentrated its credits on loans to third parties. The Panamanian Autonomous Cooperative Institute (IPACOOP) canceled the legal status of the Suntracs Multiple Services Cooperative, R.L., after confirming serious regulatory non-compliance and financial findings that compromise the integrity of the Panamanian cooperative system. The decision, contained in Resolution D.E/A.L./No. 079/2025 of May 20, was upheld after the cooperative failed to refute the findings detected during inspections conducted between 2017 and the present.
According to IPACOOP, Suntracs repeatedly failed to comply with Law No. 23 of 2015, incurring serious violations that resulted in a critical financial situation. One of the report’s most sensitive points reveals that the cooperative lacked adequate mechanisms to prevent money laundering, terrorist financing, and the proliferation of weapons of mass destruction. It also failed to classify its clients by risk level or have monitoring systems to detect suspicious transactions, which contradicts the current legal framework. Among other irregularities, the company identified a failure to perform due diligence in verifying the financial profiles of its clients, failure to identify the source of funds and the ultimate beneficiary, and a lack of oversight over the directors of related companies.
Ipacoop also noted that the cooperative operated without functioning bank accounts, was operationally and financially dependent on the Suntracs union, and excessively concentrated its credits on loans to third parties, violating its own bylaws and the fundamental principles of cooperativism. Although the cooperative filed an appeal through a lawyer authorized by its president, the appeal was rejected after exhausting all administrative remedies. In compliance with the special law, Ipacoop has established a liquidation committee to ensure a transparent liquidation and protect member contributions.
