23rd Parliamentary Intelligence-Security Forum – Trade-Based Money Laundering

Mr. Alejo Campos expressed gratitude to Congressman Pittinger for his leadership and shed light on Panama’s migrant predicament. He emphasized that over 250,000 individuals traversed the Darién Gap this year, comprising 20% children. Panama has allocated over $50 million to support migrant camps and collaborates with U.S. authorities to register and verify migrants. Unfortunately, some migrants are exploited by cartels and criminal organizations for drug trafficking, money laundering, and human trafficking.

Campos subsequently addressed trade-based money laundering (TBML), highlighting Panama’s Colón Free Zone and ports as key hubs for illicit trade. Criminals transport containers from Asia via U.S. ports to Panama and other nations, engaging in the trafficking of goods such as cigarettes, alcohol, pharmaceuticals, and counterfeit products. These illicit goods serve as both revenue streams and money-laundering tools. The broader regional ramifications extend to Venezuela, Nicaragua, and criminal networks like MS-13.

In his recommendations for combating TBML, Mr. Campos advocated for stringent controls and due diligence measures for sensitive goods, the establishment of specialized anti-money laundering units within customs, multilateral cooperation and information sharing, private-sector collaboration through licensing and transparency, and the utilization of technology such as blockchain for secure and real-time monitoring. He underscored the necessity of effective TBML prevention, which necessitates coordination between public authorities, international organizations, and the private sector to ensure transparency, accountability, and enforcement throughout the trade chain.