Panama’s Criminal Underworld: Sophisticated Networks and Corruption

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Panama has become a major hub for criminal organizations, with sophisticated networks operating in the country. Two groups, Calor Calor and Bagdad, have gained significant control over strategic areas, including the Colón Free Trade Zone and the country’s prison system.

Organized Crime Groups

Calor Calor has focused on transporting drugs for more organized criminal groups from Colombia and Mexico.
The group has reportedly become more sophisticated, with related homicides increasing as a result of its operations.

Corruption Issues

Local political figures and members of the security forces are allegedly involved in drug trafficking, money laundering, and other criminal activities.
Panama’s political institutions are weak, with a lack of effective mechanisms to tackle corruption and money laundering.

Loose Networks and Foreign Actors

Loose networks of criminals are active in Panama, specializing in crimes such as drug sales.
These networks often use low levels of violence, committing white-collar crimes and avoiding confrontations that could escalate into more violent situations.
Foreign actors are also involved in Panama’s illicit markets, including Mexican groups like the Sinaloa Cartel and Zetas, as well as Colombian crime groups BACRIM.

Economic and Financial Environment

Panama’s economy is mostly based on a well-developed services sector, but an important part of this sector could be related to money laundering.
The country has been among the fastest-growing economies in Latin America, with relatively good market institutions.
However, Panama remains on the Financial Action Task Force (FATF) grey list and missed the FATF’s deadline for implementing an anti-money laundering action plan.

Authorities in Panama generally fail to protect victims effectively, despite investing resources in victim support services.
There are no regulations for the licensing of services for psychoactive substance users, and harm reduction programs for these individuals do not exist.
The country is focusing its security strategy on reducing violence among young people in urban areas, but some crime indicators have called the effectiveness of this approach into question.

Press Freedom

Panama has improved press freedom recently, but defamation cases against journalists, particularly those covering corruption- and money laundering-related stories, are common.
These judicial actions are often used as a form of intimidation and censorship.
The selective allocation of state advertising is also used to pressure media outlets.