Panama

Panama is a Central American nation that served as a major banking center, money laundering hub, and cocaine transshipment point during the 1980s.¹

Noriega Era

Manuel Noriega, Panama's military dictator, performed valuable work for the U.S. government in Central America during the 1980s, brokering deals with South American leaders, acting as liaison to Cuba's Fidel Castro, and providing intelligence on guerrilla and terrorist activities. The former CIA chief of operations in Panama testified on Noriega's behalf during a sentencing reduction hearing in 1998.²

Contra Connections

Frigorificos de Puntarenas, a Costa Rican shrimp company later used by Oliver North and the Contras, was linked to Panamanian financial networks. Sebastian "Guachan" Gonzalez, a CIA asset heavily involved in drug trafficking in Panama and Costa Rica, was close to Noriega and suspected of involvement in the beheading of Contra supporter Hugo Spadafora. The Meneses drug organization laundered money through Panamanian channels.³

Banking and Money Laundering

Panama's banking secrecy laws made it a preferred location for drug money laundering. Danilo Blandón withdrew $175,000 in cash from his bank account in Panama to purchase his house in California. Panamanian banker Jose Fernando Soto, the longtime representative of the Swiss Bank Corp. in Panama, served as a director of one of Blandón's companies.⁴