Noriega Opens His Own Bank; Move to Launder Funds Seen

Gen. Manuel Antonio Noriega, the Panamanian strongman indicted in the United States last year on drug-trafficking charges, has opened his own bank here in what U.S. and Panamanian sources see as a move to expand military control over the economy and, possibly, corner a revived drug-money laundering business.

The new Banco Institucional Patria opened to the public Jan. 16 as a general-license bank offering a variety of services.

An official announcement of the bank’s opening listed Noriega as “president of the board of directors,” with a senior member of his general staff, Col. Marcos Justine Fernandez, as vice president. Justine is the financial manager of the Panama Defense Forces, which Noriega commands.

The announcement described the bank as a “private entity” belonging to the Defense Forces Benevolent Society and as a successor to the Panamanian military credit union.

“It’s a full-service bank for money-laundering activities,” a knowledgeable U.S. official said. “The idea is to cut out the middleman.” He asserted that the military is “trying to corner the market on money-laundering,” which he said is “flourishing right now.”