Text: Panama Assures OPIC of Desire to Halt Money Laundering

(Panamanian gov't. recognizes importance of transparent banking laws)
(970)

Panamanian President Mireya Moscoso and members of her cabinet met
July 7 with George Munoz, president of the Overseas Private Investment
Corporation (OPIC), vowing to adopt "all necessary measures" to combat
money laundering and to ensure Panama's removal from a recently
published list of 15 countries identified by an international task
force as states that tolerate money laundering, OPIC announced in a
July 7 press release.

"In discussions with Munoz, President Moscoso declared that it was
imperative for Panama not to be identified as a country with weak and
permissive banking laws," the release said. Pledging "aggressive"
steps to establish a more transparent financial infrastructure, Panama
further demonstrated "its intent to promote immediate change" by
signing a bilateral agreement with the United States to eliminate
"Panama's historic barriers to foreign trade," OPIC added.

"President Moscoso has assured me that Panama is working diligently to
insure that its banking infrastructure conforms with international
standards of transparency," Munoz said.

Following is the text of the OPIC press release:

(begin text)

OPIC PRESS RELEASE

FOR IMMEDIATE RELEASE
Friday, July 7, 2000

For further information, contact:
Joan Logue-Kinder, (202) 336-8711
Timothy Harwood, (202) 336-8744

PANAMA ASSURES OPIC OF DESIRE TO HALT MONEY LAUNDERING

Action Seen as Promoting New Era of Economic Cooperation

PANAMA CITY, Panama -- In a meeting today with George Munoz, President
and CEO of the Overseas Private Investment Corporation (OPIC),
Panamanian President Mireya Moscoso, Foreign Minister Jose Miguel
Aleman and Minister of Commerce and Trade Joaquin Jacome Diez assured
Munoz that Panama was aggressively acting to take "all necessary
measures" to have itself removed from a recently published list of 15
countries identified by the G-7's Financial Action Task Force as
states that tolerate money laundering.

The Task Force was established in 1989, specifically to fight
questionable banking practices in countries around the world. Panama
was also named in a newly-released report by the Organization for
Economic Cooperation and Development (OECD) which lists 35 countries
known to serve as tax havens and locations for money launderers. In
discussions with Munoz, President Moscoso declared that it was
imperative for Panama not to be identified as a country with weak and
permissive banking laws.

As an indication of its intent to promote immediate change, President
Moscoso and Minister of Commerce and Trade Jacome joined Munoz in a
signing ceremony to inaugurate a bilateral agreement with the United
States which eliminates Panama's historic barriers to foreign trade.

Munoz hailed the bilateral as an indication of "a new era of
cooperation and economic development" that will yield increased levels
of U.S. investment in Panama which will foster mutual benefits.

"President Moscoso has assured me that Panama is working diligently to
insure that its banking infrastructure conforms with international
standards of transparency," Munoz said. "Certainly President Moscoso
is well aware that foreign investment depends on investor confidence
in institutional frameworks, and the need to provide such an
environment as quickly as possible."

"There is no question that Panama has today demonstrated its
seriousness and foresight about attracting U.S. investment, by
creating an investor-friendly environment that will assure American
companies of a level playing field," Munoz said. "What most excites us
at OPIC is the chance to turn this opportunity into tangible and
significant numbers of jobs for both Panamanians and Americans, so
that trade will increase and standards of living improve."

President Moscoso said: "This agreement sends an important message,
not only to our principal commercial partner, the United States, but
also to the international business community, that our government is
aware that the creation of an investor-friendly environment brings
with it more and better investments."

"I wish to convey to Mr. Munoz our appreciation for his visit to
Panama and reaffirm that for this country and this government, it is a
matter of pride that OPIC will be having its regional meeting for
Central America and the Caribbean in our country in a few days,"
President Moscoso added.

Munoz said he briefed business leaders in Panama about enhancement of
the Caribbean Basin Initiative (CACI), which was part of the Trade and
Development Act of 2000 that President Clinton signed on May 18. The
Clinton-Gore Administration has charged OPIC with helping attract U.S.
investment to Central America and the Caribbean. To further that aim,
OPIC will be conducting a regional conference in Panama designed to
stimulate the interest of American companies in investment
opportunities in the Central American and Caribbean region and to
inform regional officials of OPIC services which facilitate
investment, and the many recent success stories involving
OPIC-supported projects in the area.

Munoz noted that he will be back in Panama City on July 19 and 20 for
the investment conference that will also serve as a trade mission for
U.S. companies looking to invest in the area. This regional conference
will be a part of a series of conferences held in numerous cities
across the U.S. to inform business people about the opportunities
provided by the CACI. OPIC has created websites about both the CACI
series (http://www.opic.gov/CACI/HOME.HTM) and the Panama conference
(http://www.opic.gov/caci/events/pfconferences.htm).

OPIC is a self-sustaining federal agency that sells investment
services to small, medium and large American businesses expanding into
some 140 developing nations and emerging markets around the world.
OPIC's political risk insurance, project finance and investment funds
fill a commercial void, create a level playing field for U.S.
businesses and support development in emerging economies. Since 1971,
OPIC has supported nearly $130 billion worth of investments that will
generate over $61 billion in U.S. exports and create or support more
than 242,000 American jobs.

(end text)

(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)