This report outlines the arrest of a designated leader of a Panamanian drug and arms trafficking organization, described by authorities as the most active international cartel operating from Panama. The arrest occurred in Madrid, where law enforcement agents located and detained the individual in a municipality on Monday, February 20. He is accused of founding and running a criminal network involved in money laundering and cross-border crime.
The individual had been missing since 2021, a period during which the organization he led dissolved. Investigators indicate that a core laundering channel revolved around smuggling gold bars from Panama to Spain, a scheme that linked the cartel to significant financial movements across borders.
The inquiry into these activities began in 2021, when the U.S. Department of the Treasury, via its Madrid embassy, signaled a potential relocation of the Panamanian cartel’s leadership to Spain. Officials described the cartel’s wide-ranging operations, including sizable cocaine shipments into Europe, as part of its primary business model. This concern prompted ongoing cooperation between U.S. authorities and Panamanian judicial and law enforcement partners to verify these lines of inquiry and identify those responsible.
In response to the investigation, authorities conducted extensive operations that targeted money laundering networks tied to the cartel. A notable development involved restructuring more than ten separate laundering schemes and detecting transactions exceeding one million euros linked to the organization. The inquiry confirmed that a major laundering operation relied on smuggling gold bullion from Panama to a Spanish gold foundry, where the cartel’s finances were processed. The foundry’s financial director was arrested, marking a significant setback for the group’s illicit financial infrastructure.
Further investigations revealed that a substantial portion of laundered proceeds were converted into virtual currency. Investigators identified a key individual overseeing the company responsible for the currency conversion, who was subsequently apprehended. In total, ten individuals were detained in connection with the case, 92 bank accounts were blocked, and ancillary assets were restrained, including more than 400,000 euros in cash, 39 properties valued at approximately 1.5 million euros, and ten vehicles valued at around 170,000 euros.
Although the cartel’s head remained at large for a time, law enforcement maintained persistent pressure through coordinated actions with Panamanian authorities. The investigation intensified and ultimately led to the arrest of the principal suspect in the Madrid area, specifically in Pozuelo de Alarcón, revealing that the focal point of the inquiry had shifted into Spain. The ongoing collaboration underscores the commitment of international authorities to dismantle money-laundering networks and disrupt the transnational reach of major drug and arms trafficking organizations.
Authorities emphasize that the case highlights the intertwined nature of criminal networks spanning Panama and Europe, where illicit proceeds are laundered through traditional finance channels and modern digital avenues. The operation illustrates how money moves across borders in pursuit of concealment and expansion, and how cross-border cooperation reinforces accountability for those responsible. Ongoing investigations aim to trace residual assets and prevent further expansion of the organization’s influence across Europe and the Americas. (U.S. Department of the Treasury; Panamanian judicial authorities; Madrid police and related agencies; official statements and case notes.)