Banking authority nixes intervention rumors

THE FALLOUT from the money laundering allegations against the Waked family owned Wisa Group  has  ignited a forest fire of rumors from staff layoffs at the group’s flagship luxury  Soho Mall  where it owns stores like Burberry, La Riviera Brooks Brothers and Felix B, Maduro  to  interventions in banks.

For the second time in less than  a week The Superintendency of Banks, has issued a statement denying it is involved in the intervention of any banks beyond Balboa Bank & Trust.

“The Superintendency of Banks reiterates to the citizenry in general that we are not starting intervention of any bank in particular. The banking system in Panama is very solid and stable with regard to liquidity and solvency levels. All banks meet the requirements of liquidity and capital required by the legal and regulatory framework,” it said.

“We recommend to the community that it pay attention only to official communications issued by this institution and disregard rumors on social networks.”

It also noted that spreading false news that would endanger the national economy or public credit shall be punished by imprisonment of two to five years in prison.

A similar communication was published May 7, two days after the Office of Foreign Asset Control (OFAC) of the U.S. Treasury  Department included Abdul and Nidal Waked, as well as other members of their families and 68 of their businesses, on the Clinton List for being linked to money laundering and drug trafficking.

Last week, the Superintendency took administrative and operational control of the Balboa Bank & Trust, one of the companies included in the Clinton List.