It seems that for some high-net-worth individuals in Panama, the customer take-on process at large private banks does not involve too much in the way of due diligence.

Alejandro Moncada Luna, one of Panama's supreme court judges, allegedly set up accounts at various banks in Panama City without being made to comply with the usual requirement to state 'source of funds.' His deposits into them were of the order of $100,000 or more apiece and are thought to be the proceeds of bribes given to him in exchange for favourable judgments. Luna is under house arrest.

The investigation into the judge has led to allegations of unjust enrichment, money-laundering, the forgery of public documents and public corruption. The impetus behind it is the recent appearence of a 'reformist' government hell-bent on cleaning up public affairs in the strategic offshore centre after the chequered rule of President 'Il Duce' Ricardo Martinelli. The names of the recalcitrant banks are not yet known, although they are likely to emerge in the event of a trial.