Narcotics activities in Panama: mutual legal assistance treaty needed - address by R. Grant Smith - includes address by Margaret Tutwiler on human rights in Cuba - Transcript

US Department of State Dispatch, May 11, 1992

The annex also includes provisions relating to the exchange of currency transaction information. Both the United States and Panama have imposed legal requirements on their financial institutions to keep records of large currency transactions and to provide law enforcement authorities with access to that information. The second section of the annex makes explicit that the parties can use the MLAT as a mechanism for providing and obtaining this information for use in criminal investigations and prosecutions.

The annex specifically confirms that although "pure tax" matters are not covered by the MLAT, tax offenses related to monies generated by criminal activity otherwise covered by the MLAT do fall within its scope.

Section 3 of the annex reaffirms the understanding of the negotiators that when the treaty enters into force, each party will have the necessary legal authority to fully implement all of its provisions. Panamanian negotiators assured us that the treaty, upon entry into force, would be the law of the land in Panama. As such, it would serve as implementing legislation in any areas not already covered by existing Panamanian law, and it would give Panamanian authorities any additional necessary affirmative power to act to carry out its provisions.

This treaty is critically important to advance the law enforcement interests of both the United States and Panama. The Administration believes that the MLAT will significantly augment the law enforcement tools needed to assist in the prosecution of a wide variety of modern criminals, including members of drug cartels, "white collar" criminals, and terrorists. Panama recognizes that and ratified the MLAT almost a year ago. We appeal to the US Senate to act quickly so that the treaty can enter into force as soon as possible.