May 31, 2020

Panama regulator extends intervention of Venezuelan bank AllBank Corp

The Superintendence of Banks of Panama extended for an additional 30 days the administrative and operational control of AllBank Corp., of the Venezuelan BOD Group, intervened since last September 9 in order to safeguard the interests of depositors, according to the information official.

The Panamanian regulatory body indicated that the extension of the intervention of the banking institution for another 30 days began to apply on Wednesday at 3:00 p.m. local time (8:00 p.m. GMT), and is embodied in Resolution SBP-0191- 2019.

He added that the decision is based on the Banking Law, and reiterated that the intervention "does not represent a risk of contagion for the rest of the Banking System, given the non-existent connection of interbank relationships of the AllBank Corp. with the rest of the system."

On September 9, the Panamanian Superintendence explained that AllBank decided to intervene after one of the banks owned by the institution's main shareholder in the jurisdiction of Curacao (Banco del Orinoco, NV) was subject to a similar measure that month by the Centrale Bank van Curacao in Sint Maarten (CBCS).

In the Bank of Orinoco, N.V. a quarter of AllBank's liquid assets are placed and it provides custody services to about a third of its investment portfolio, the Panamanian regulator then said in its resolution.

This resulted, according to the Panamanian Superintendency, in which Banco Orinoco NV "cannot continue providing its regular services, will not be able to offer new services, or attract clients and may not be obliged to comply with its debts, so for the moment they will be frozen all your assets. "

Given this situation, AllBank would have limited access to part of its liquid assets and there is no exact certainty of the transfer of the investment portfolio in custody, "which poses a danger to the interests of depositors and creditors," he argued. Banking regulator in Panama.

In its resolution of September 9, the Superintendency indicated that it had been paying "special attention" to AllBank, among other things, due to "weaknesses in compliance with the Regime of Money Laundering Prevention, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction, and other provisions "in force in Panama.

A great-grandson of the Spanish dictator Francisco Franco, Luis Alfonso de Borbón Martínez Bordiú, is one of the directors of the AllBank Corp., which is chaired by Venezuelan banker Víctor Vargas Irausquin.

This is included in the presentation of the website of the entity chaired by Vargas Irasuquín, who is also the father of Martínez Bordiú's wife, Maria Margarita Vargas Santaella.

. (tagsToTranslate) Regulator (t) Panama (t) intervention (t) AllBank (t) Corp

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