Panama is under scrutiny after corruption schemes were shown to have penetrated the country.

Panama’s financial and property sectors have once again come under scrutiny, as anti-corruption watchdogs revealed the extent to which Venezuelan corruption schemes have penetrated the country.

According to Transparency Venezuela, the exiled chapter of Transparency International, at least 178 investigations across 30 jurisdictions include Panamanian-registered companies, underscoring the country’s role as a conduit for illicit capital linked to Caracas.

Mercedes De Freitas, executive director of Transparency Venezuela, told journalists and civil society members in Panama City that

• These cases represent around $69bn in suspicious flows, equivalent to 11 times Venezuela’s GDP, citing estimates from La Prensa and La Estrella de Panamá.

While the organisation only has access to around 60% of the case files, she argued that the real scope is “the tip of the iceberg”.

The corruption schemes have been ongoing for two decades.

• Initial signs appeared in 2004, but from 2012 onwards, the magnitude of operations abroad increased sharply.
• Assets and funds have been channelled through financial hubs including Hong Kong, Delaware, and Panama, with the latter serving not only as a financial platform but also as a real estate market where illicit funds could be laundered.

Transparency International’s 2025 Real Estate Opacity Index places Panama among the most vulnerable jurisdictions for property-based money laundering.

The Panamanian housing market has become one of the most visible points of distortion.

De Freitas noted that

• Illicit Venezuelan money entering Panama’s financial system has pushed up housing costs and created speculative bubbles.

Olga de Obaldía, director of the Fundación para la Libertad Ciudadana (Panama’s Transparency International chapter), argued that

• These flows complicate access to housing, increase credit costs, and encourage the presence of organised criminal groups funded by corruption proceeds.

The influence extends beyond economics.

Former Transparency International president José Ugaz stressed that

• “Grand corruption is not merely financial; it has direct consequences for human rights”.
• With 41 Venezuelan fugitives wanted by foreign courts now residing in Venezuela, and
• with Caracas refusing cooperation requests, enforcement in other jurisdictions like Panama has gained importance.

Several emblematic investigations highlight Panama’s exposure.

• The All Bank scandal, currently under judicial review, involved a businessman accused of defrauding thousands of depositors through operations tied to Venezuelan and Caribbean banks.
• The Money Flight case, prosecuted in the United States, Spain, Argentina and Panama, documented a $1.2bn scheme between Venezuelan state oil company PDVSA, contractors, and politically connected elites.

Further reports by La Prensa, Armando.Info, the Centro Latinoamericano de Investigación Periodística (CLIP), and Transparency Venezuela have detailed how

• A Panamanian businessman partnered with relatives of Cilia Flores, Venezuela’s first lady, to secure no-bid contracts for infrastructure and imports.
• Payments from these deals allegedly passed through Panamanian banks linked to Venezuelan financier Víctor Vargas, several of which have since collapsed.

AND Transparency Venezuela has also pointed to the preferential dollar scheme,

• Under which businessmen close to Nicolás Maduro’s government obtained subsidised foreign exchange to import food and goods.
• Colombian businessman Alex Saab, now Venezuela’s Minister of Industry, allegedly used Panama’s Colón Free Zone to structure some of these transactions.

De Freitas declined to release the names of Panamanian firms under investigation, citing

• Judicial confidentiality, she argued that transparency in beneficial ownership should be the first step to close loopholes.

She said.

• “Why can we not know the ultimate owners of companies? That secrecy costs states billions and sustains corruption networks,”

De Obaldía added.

• “Publishing the assets and interests of politically exposed individuals would allow society and the press to conduct broader oversight, given the limited capacity of the justice system,”

Ugaz argued that Panama is uniquely positioned to play a decisive role.

• With an independent judiciary and significant financial flows passing through the country, authorities have both the opportunity and responsibility to push forward investigations.
• “Panama must act not only out of solidarity with Venezuela but for its own protection, because these illicit capitals contaminate and distort its economy,”

Panama was recently removed from the European Union’s blacklist, a move welcomed by officials and watchdogs alike.

However, both De Freitas and Ugaz warned that

• The country remains vulnerable unless it strengthens regulations in property and financial sectors, particularly with politically exposed persons.

Transparency Venezuela’s delegation met with Panamanian officials this week, offering to share databases, network analyses and investigative reports gathered over years of monitoring Venezuelan corruption.

The aim, Ugaz said, is to help Panamanian authorities strengthen their cases and prevent the country from becoming further entangled in cross-border criminal networks.

SOURCE