Panama shares $36 million for role in nabbing Colon money launderers

PANAMA has signed a deal with the U.S. Department of Justice to share over $36 million in criminal assets seized after the uncovering of a giant money laundering operation in the Colon Free Zone.

It is the second largest amount shared by the U.S. Department of Justice with a foreign government and the first time Panama has been the beneficiary.

The agreement was signed in Panama City by U.S. Deputy Attorney General James M. Cole and Panama’s Attorney General, Ana Belfon , signed an agreement today in Panama City.
“This division of property is rooted in the broad and extensive assistance provided by the Government of Panama in connection with the money laundering case in 2000 involving Panama jewelers shops,” says a U.S. embassy press release.
"[The] settlement highlights , through the distribution of goods, the Justice Department's recognition of the incredible assistance provided by the Panamanian authorities , " said Cole . "For over 12 years, support from the Panamanian authorities has been consistent , reliable and powerful. "
The division of property is the result of an investigation launched in 1998 by agents of the Drug Enforcement Administration ( DEA ) of the U.S. and Panamanian authorities about Speed Jewellers SA , which operated from the Colon Free Zone in Panama . It was found that the owners washed massive amounts of profits derived from narcotics trafficking through Speed Jewelers and another jewelry business , Argento Vivo SA
“The confiscated property will be used to strengthen the ability of the Republic of Panama to combat money laundering and the seizure of illicit goods in criminal investigations and prosecution ,” said the U.S. statement .
Due to the large sum of money that is being shared , the agreement establishes a Distribution Executive Committee composed of six members to monitor the distribution process .
The agreement authorizes the committee to approve the selection of all programs and projects. The agreement allows for representation on the committee by the Departments of Justice , Treasury and U.S. State , and the Attorney General's Office , and the Panama Ministries of Public Security and Foreign Affairs. The signing today of this specific agreement the case will allow the Executive Committee to consider distribution proposals and specific requests for funding.

Other Central American countries that have received seized assets include Costa Rica , Guatemala and Honduras . The biggest beneficiary so far has been Guatemala , In the past 24 years , the United States has shared more than $ 277 million in criminal assets confiscated in 54 countries in recognition of their support in investigations and prosecutions of seizure .