Banks close Martinelli’s CD party accounts

Banks close Martinelli’s CD  party accounts
PANAMA’S BANKING system which was a benefactor of many of the deposits by businessmen and politicians who benefited from the multiple scandals during the previous administration is under the microscope of the Superintendency of Banks, and now several institutions have closed the accounts of the Democratic Change (CD) Party.

Democratic Change was founded, funded and led, by Ricardo Martinelli as part of his successful strategy to become president. Within its structure, heading the, foot sloggers was, a coterie of Martinelli business associates known as the Zero Circle, many of whose names have surfaced during corruption investigations.
In the midst of the scandals surrounding officials of the administration, several banks have closed accounts of the political group.
One of them is Citibank, which closed the accounts in March.
The bank said the decision is part of an adjustment in its business strategy and it made the move to ensure “that the level and type of activity are aligned with the services that we want to offer.”
It closed two accounts with a total of about $340,000.
Banco Nacional which received the $13 million in election subsidies received by the party also made the same decision reports La Prensa.
CD official Alma Cortés confirmed the fact and said that it has raised the issue with the Electoral Tribunal.
“The whole situation is due to perceptions that have arisen due to the investigations,” said Cortés.
The local banking system is under scrutiny due to the corruption scandals involving former government officials. These investigations have revealed the existence of accounts with millions of dollars in them. That has raised questions about the lack of controls with regard to money laundering and other financial irregularities.
In December 2014, the Banking Superintendency announced it would inspect accounts in 15 banks which were allegedly used for the proceeds from acts of corruption.