VZCZCXYZ0001
RR RUEHWEB

DE RUEHZP #2451/01 3631849
ZNR UUUUU ZZH
R 291849Z DEC 06
FM AMEMBASSY PANAMA
TO RUEHC/SECSTATE WASHDC 9564
INFO RUEILB/NCTC WASHDC

UNCLAS PANAMA 002451 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR S/CT RHONDA SHORE AND WHA/CEN 
PASS TO NCTC 
 
E.O. 12958: N/A 
TAGS: PTER ASEC EFIN KCRM KPAO KHLS PM
SUBJECT: PANAMA: 2006 COUNTRY REPORTS ON TERRORISM 
 
REF: STATE 175925 
 
GENERAL ASSESSMENT 
------------------ 
 
¶1.  (SBU) SUMMARY.  Panama continues to be a strong partner 
with the United States in the global war on terrorism.  The 
Panama Canal is the country's most important economic asset. 
Any act of terrorism that closes off the Canal could severely 
impact Panama's economy, the United States, and other 
countries in the region that rely heavily on the Canal for 
commerce.  Panama's Public Forces (PPF) closely monitor the 
Revolutionary Armed Forces of Colombia (FARC) and United 
Self-Defense Forces of Colombia's (AUC) activities in the 
Darien Province on the Colombian border.  The Government of 
Panama (GOP) undertook a review of the structure of the PPF 
and conducted exercises to ensure its ability to protect the 
Canal and residents of Panama against a possible terrorist 
act.  END SUMMARY. 
 
¶2.  (SBU) Panama remains a low-threat post for indigenous 
terrorism and the State Department downgraded Panama from 
"high" to "medium" on the State Department's Security 
Environmental Threat List (SETL) for transnational terrorism. 
 Notable events in 2006 include the creation of a dedicated 
border force within the Panamanian National Police (PNP) and 
the hosting of a conference for Inter-American Committee 
Against Terrorism (CICTE) members. 
 
¶3.  (SBU) Panama did not make any public statements in 
support of a terrorist-supporting country on a terrorism 
issue or provide any support for international terrorism.  On 
the contrary, the GOP speaks out against terrorism in many 
international forums and signed or ratified all applicable 
international agreements concerning counterterrorism. 
 
 
SAFE HAVEN ASSESSMENT 
--------------------- 
 
¶4.  (SBU) Panama did not provide any support to international 
terrorism, terrorists, or terrorist groups. 
 
 
TERRORIST GROUPS/ORGANIZATIONS 
------------------------------ 
 
¶5.  (SBU) Panama currently has no recognized domestic 
terrorism organizations. 
 
¶6.  (SBU) However, Panama remains a transshipment point for 
arms, drugs, and smuggling of illegal aliens due to its 
highly developed commercial transport sector and shared 
border with Colombia, home to the FARC and AUC, both 
designated as terrorist organizations by the State 
Department.  Panama's remote border region with Colombia, the 
Darien Province, served in the past as a rest and recreation 
point for the FARC. 
 
¶7.  (SBU) In January 2006, the FARC kidnapped two Spanish 
citizens near the town of Jaque in the Darien.  The group 
held and later released the two individuals.  This incident 
indicates that the FARC presence and activity in the Darien 
remains.  In January 2003, AUC narcoterrorists killed four 
Panamanian citizens in the village of Paya. 
 
¶8.  (SBU) In 2006 Panama created a dedicated border patrol 
force for both the Colombian and Costa Rican borders.  The 
Border Protection Force is a separate service with its own 
command and headquarters, but remains under the direction of 
the Panamanian National Police (PNP).  Panama believes a 
dedicated border force will result in higher professionalism 
as well as improved border security.  The PNP in turn will 
dedicate more of its efforts to traditional police functions 
instead of rotating part of its force to the border to 
conduct paramilitary operations every 30 days. 
 
¶9.  (SBU) In June 2003, Panama signed a border security 
cooperation agreement (Comision Binacional Fronteriza or 
COMBIFRON) with Colombia.  COMBIFRON provides a framework for 
sharing cross-border security information and encourages 
security-force cooperation on insurgent, drug, and illegal 
migrant issues.  Panama has no army, however, the PNP with 
U.S. training and assistance established a permanent presence 
in several towns along the border with Colombia to prevent 
narcoterrorist operations. 
 
 
FOREIGN GOVERNMENT COOPERATION 
------------------------------ 
 
¶10.  (SBU) The GOP signed and ratified all 12 international 
counterterrorism conventions passed after September 11, 2001. 
 The GOP fully supports the Inter-American Convention Against 
Terrorism.  On December 1, 2006 the Panamanian National 
Assembly ratified the International Convention on the 
Repression of Nuclear Terrorism. 
 
¶11.  (SBU) On May 12, 2004 Panama signed the Proliferation 
Security Initiative (PSI) which allows U.S. forces to board 
Panamanian flagged vessels suspected of carrying weapons of 
mass destruction.  Panama maintains the world's largest ship 
registry, making PSI an important tool in countering 
terrorism.  The United States and Panama are discussing 
information exchanges on various security issues. 
 
¶12.  (SBU) Panama provides enhanced force protection for U.S. 
military vessels, including submarines, during "high value 
transits" (HVT) of the Canal.  USG officials have praised the 
GOP's level of support and security for HVTs.  During the 
November 2005 visit to Panama by President Bush, the GOP 
permitted a sizable U.S. military presence to counter the 
possibility of a terrorist act. 
 
¶13.  (SBU) The Ministry of Government and Justice (MOGJ) uses 
classroom training, table-top exercises, and field visits to 
improve coordination among the PPF agencies.  Panama is also 
the sponsor and host of the annual PANAMAX exercise.  PANAMAX 
is a multinational civil and military forces training 
exercise tailored to the defense of the Panama Canal.  The 
exercise replicates real world threats to the Canal in order 
to develop appropriate responses and guarantee safe passage 
through the waterway.  The 2006 PANAMAX was the fourth 
consecutive year for the exercise.  Fifteen nations, 
including the United States, participated. 
 
¶14.  (SBU) The MOGJ works closely with the U.S. Department of 
Homeland Security and Department of Justice in the Prisoner 
Transfer program, which included 90 transfers in 2006.  This 
program transfers mostly narcotraffickers, whose revenues 
support the FARC and the AUC, to U.S. custody for 
prosecution.  The GOP and DHS are also working together on 
other joint counterterrorist initiatives, including the 
malafide traveler interdiction operation at Tocumen Airport, 
Operation Firewall, where targeted shipments of undeclared 
financial instruments were seized while transiting through 
Panama, and Panama's continued efforts to improve the level 
of international Shipping and Port Security (ISPS) 
compliance.  Through 2006 Panama worked closely with DHS to 
finalize the Declaration of Principles for Panama's Container 
Security Initiative, which is scheduled to be signed in 
February 2007. 
 
¶15.  (SBU) In 2006, Panamanian law enforcement authorities 
worked jointly with the U.S. Drug Enforcement Administration 
(DEA) to seize over 32 metric tons of cocaine and over $12 
million in drug proceeds and assets. 
 
¶16.  (SBU) On October 30-31, 2006, Panama hosted a 
multilateral conference for Inter-American Committee Against 
Terrorism (CICTE) members from the United States, Panama, 
Colombia, and Brazil to discuss strategies and preventative 
measures to protect critical infrastructure vulnerabilities 
from potential terrorist activities.  The conference included 
expert presentations on topics such as telecommunications, 
cybersecurity, and international port security. 
Representatives from each country provided an overview of the 
agencies, programs, and tactical measures implemented to 
protect critical infrastructure.  The meetings were a 
preparatory step for the planned February 2007 CICTE 
conference in Panama which will be a larger scale event aimed 
at including all CICTE member states. 
 
¶17.  (SBU) Panama's Colon Free Trade Zone (CFZ) is the second 
largest in the world and over 2400 companies and 25 banks 
operate there, importing and re-exporting goods from around 
the world, including the Middle East.  Due to its high level 
of unemployment rate, high level of poverty, and its use by 
drug smugglers, the adjacent town of Colon has a critical 
crime rate.  The GOP is concerned about the possibility of 
terrorist groups exploiting Colon's poverty and drug 
smuggling routes to further their goals. 
 
¶18.  (SBU) Panama is an international offshore banking 
center.  While the GOP has taken extensive measures to combat 
money laundering, the banking system and the CFZ still serve 
as vehicles for illicit finance.  Panama's Foreign Ministry, 
Council for Public Security and National Defense, Financial 
Analysis Unit, and the Superintendent of Banks are fully 
cooperative in reviewing terrorism finance lists.  In 2006, 
no terrorist assets were 
discovered.  The Panamanian legislature passed legislation 
restricting possession of precursor chemicals and toughened 
laws on money laundering. 
 
¶19.  (SBU) Panama did not make any arrests, trials, or 
convictions of terrorists in 2006.  The GOP did not extradite 
or request extradition of any suspected terrorist to or from 
other countries during 2006.  The United States did not 
request Panama to extradite any suspected terrorists in 2006. 
 Article 24 of the Panamanian Constitution prohibits the 
extradition of Panamanian nationals for any reason and of 
foreign nationals for political crimes.  Also, the GOP will 
not extradite anyone for a crime punishable by death, unless 
the requesting country provides formal assurance that the 
individual will not receive a penalty greater than Panama's 
maximum sentence (for any crime) of 20 years imprisonment. 
 
¶20.  (U) Embassy point of contact for this report is Poloff 
Carrie Lee, email LeeCK2@state.gov, phone number 
011-507-207-7131. 
 
Eaton