Waked Group, accused of money laundering

The public ministry has launched an “immediate inquiry” for supposed money laundering and drug trafficking activities against businessman Abdul Waked, CEO of the Waked Group of companies.

The Public Ministry’s action follows an announcement by the U.S. Treasury Department, whose Office for Foreign Assets Control (OFAC) yesterday accused the Waked Group of links with a foreign organization connected with money laundering and drug trafficking activities.

The OFAC’s report confirms that Nidal Ahmed Waked was apprehended on Wednesday upon arriving at Bogota airport. According to DEA deputy director Jack Riley, “Nidal Ahmed Waked has a long history of money laundering in connection with some of the most sought-after and sophisticated drug trafficking networks”. Upon his arrest, the Colombian authorities ordered his immediate extradition to the United States. He is facing charges in Florida.

The Ofac report details how the Waked group comprises some 68 companies around the world.

These include Grupo Wisa, which includes the media outlets La Estrella and El Siglo, Vida Panamá (Colon Free Zone) S.A, Balboa Bank & Trust. Said companies have activities in Panama, Colombia and Spain. John E Smith, Ofac’s Director, explained that the associated companies participated in money laundering activities in the region via false billing, using retailing, banking and real estate activities as a front.

The Ofac report also confirmed that the assets of people mentioned in its list had been frozen. The report specified that U.S. persons are forbidden from executing any transaction with the group, with immediate effect. Against this backdrop, the Panamanian banking regulator ordered the intervention of Balboa Bank, with the aim of protecting its deposit holders. For its part, the Economics and Finance Ministry will conduct detailed investigations of all companies named In the U.S. Treasury Department’s report.

In Panama, the Office for the Supervision and Regulation of Non-financial Business is responsible for investigating supposed money laundering, drug and arms trafficking and other illicit activities taking place on Panamanian soil, according to law 23 of 27th of April, 2015. Following Ofac’s report, the Panamanian authorities will launch a detailed investigation of all such activities. These would include those in the Colon Free Zone: Grupo Wisa, S.A., Vida Panamá S.A., Servicio de Equipo Rodante Incorporado y Grupo Cima S.A, among others.

The Wisa Group yesterday issued a public statement in which it announced it was prepared to cooperate with the legal investigation, which it qualified as misguided and regretful. “Our company has been carrying out legitimate activities for over 40 years, generating employment and wealth”, the statement read. The company denies any wrongdoing.