Scared Old Man Cosplays as Strongman

Trump’s Panama Play and the Shadow of Dirty Money

Introduction

Donald Trump’s recent threats against Panama, including demands for the Panama Canal to be “returned” to the United States, have sparked alarm and confusion.

On the surface, his statements appear to be a nationalist appeal rooted in historical grievances and a desire to portray strength. However, the timing and content of these statements suggest that there may be more at play.

Trump’s attacks on Panama could serve as a smokescreen to distract from his own legal and financial entanglements in the country, particularly his controversial Trump Ocean Club project in Panama City.

As Trump prepares to be inaugurated for a second presidential term in January 2025, his position as a sitting president will likely delay criminal trials and derail civil lawsuits against him until at least 2029.

Nevertheless, the allegations surrounding his business dealings—including claims of money laundering involving Colombian drug cartels and Russian organized crime—remain significant.

This article explores how Trump’s history in Panama and his reliance on questionable international financing may inform his recent rhetoric and political strategy.

Part I: Trump’s Latest Panama Rhetoric

In a series of Truth Social posts on December 21, 2024, Trump described the Panama Canal as a “vital national asset” for the United States and accused Panama of overcharging American entities for its use.

He blamed former President Jimmy Carter for the canal’s transfer to Panamanian control in 1999, calling the agreement a “complete rip-off” and threatening to demand the canal’s return if Panama does not comply with his demands.

Trump’s rhetoric ignores the legal and diplomatic realities of the U.S.-Panama relationship and risks undermining decades of cooperation between the two nations.

While his statements may appeal to nationalist sentiments, they also serve as a convenient distraction from his personal vulnerabilities—namely, the mounting scrutiny of his financial dealings in Panama.

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Part II: The Trump Ocean Club—A Case Study in Financial Misconduct

The Trump Ocean Club International Hotel and Tower in Panama is emblematic of Donald Trump’s post-bankruptcy business model: licensing his name to high-risk ventures in exchange for profit while avoiding direct financial liability.

This arrangement, however, left the project vulnerable to exploitation by criminal networks seeking to launder illicit funds.

The Colombian Connection

The Trump Ocean Club, Trump’s first international licensing venture, opened in Panama City in 2011. It quickly became one of Trump’s most lucrative business projects, earning him an estimated $75.4 million by the end of 2010.

However, a 2017 investigation by Global Witness revealed that the project was used to launder money from Colombian drug cartels.

David Eduardo Helmut Murcia Guzmán, a notorious Colombian fraudster and money launderer with ties to armed groups such as the FARC and AUC, was a key figure in this operation.

Murcia Guzmán purchased multiple pre-construction units in the Trump Ocean Club, using cash smuggled into Panama by couriers, according to interviews and court records.

His lawyer in Panama confirmed that the cash was brought in by “mules.” At the same time, other sources suggested that Murcia Guzmán used customized vessels equipped with lead-lined tanks to ferry money into the country covertly.

Murcia Guzmán’s business associate, Alexandre Henrique Ventura Nogueira, brokered nearly a third of the pre-construction unit sales at the Trump Ocean Club.

Nogueira admitted in interviews that he facilitated purchases for buyers with questionable backgrounds, including Murcia Guzmán and other figures associated with organized crime.

According to the report, the Trump Organization did not conduct adequate due diligence on the buyers, which is a recurring theme in Trump’s business dealings.

The Russian Connection

The Trump Ocean Club also attracted significant investment from Russian and Eastern European buyers, some of whom were later revealed to have ties to organized crime.

Nogueira himself admitted that approximately 50% of his clients were Russian, and that some were affiliated with the Russian Mafia.

He described these buyers as “very secretive,” frequently using shell companies to obscure their identities and the origins of their funds.

Two prominent Russian investors in the project, Andrey Bogdanov and Ivan Kazanikov purchased at least six units worth nearly $4.4 million.

Both men attended the Trump Ocean Club’s inauguration in 2011 and were photographed with Donald Trump.

Bogdanov, a former executive at Russia’s Master Bank—which lost its license due to money laundering violations—allegedly used a Panamanian company as a front to move money for Russian clients.

Kazanikov, meanwhile, reportedly brought large sums of money into Panama for speculative property purchases.

These revelations align with broader allegations that Trump’s real estate ventures relied on untraceable funds, some linked to Russian criminal networks. According to the report,

Trump’s licensing deals often attracted buyers who paid in cash or used opaque financial structures, raising serious questions about the sources of their wealth.

Part III: Trump’s Business Model and the Risks of Corruption

The Trump Ocean Club illustrates the risks inherent in Trump’s post-bankruptcy business model, prioritizing branding over ethical scrutiny.

Following a series of financial failures in the late 1990s, Trump pivoted to licensing his name to real estate projects, earning substantial fees with minimal investment.

While this model allowed Trump to recover from bankruptcy, it also exposed his ventures to exploitation by criminal networks.

During the early 2000s, Panama was a global hotspot for money laundering. Luxury real estate developments, like the Trump Ocean Club, became favored vehicles for laundering proceeds from narcotics trafficking and other illicit activities.

By accepting pre-construction sales from anonymous shell companies and buyers paying in cash, the Trump Ocean Club enabled criminals to “clean” their money while Trump profited from the arrangement.

Trump’s defenders argue that he was merely a licensor with no direct responsibility for the project’s financing or sales.

However, as the report notes, the Trump Organization likely had audit rights and access to sales information, making it difficult to argue ignorance of the buyers’ backgrounds.

Part IV: Political Strategy or Personal Defense?

As Trump prepares to begin his second term as president, his attacks on Panama may serve multiple purposes.

On one level, they allow him to project strength and nationalism, rallying his base with familiar themes of grievance and defiance.

On another level, they may be an attempt to preempt or deflect attention from investigations into his financial dealings.

With the protections the presidency provides, Trump will likely avoid criminal trials and delay civil lawsuits until he leaves office in 2029.

However, the allegations of money laundering and ties to organized crime in Panama remain a significant liability, both legally and politically.

Trump’s rhetoric may be an effort to muddy the waters and cast himself as the victim of international exploitation rather than a participant in questionable financial schemes.

Part V: Implications for U.S.-Panama Relations

Trump’s threats against Panama risk damaging a critical partnership in the Western Hemisphere. The Panama Canal remains a vital artery for global trade, and Panama has been a reliable steward of the canal since assuming control in 1999.

Trump’s demands for the canal’s return are legally untenable and undermine decades of diplomatic progress.

Moreover, Trump’s personal entanglements in Panama raise concerns about potential conflicts of interest.

If his business dealings continue to attract scrutiny, they could complicate U.S. relations with Panama and Latin America more broadly, particularly on issues such as trade, security, and anti-corruption initiatives.

Conclusion: The Cost of Ignorance

Trump’s Panama rhetoric may play well with his supporters, but it reveals more about his personal insecurities and vulnerabilities than about U.S. strategic interests.

The Trump Ocean Club illustrates the dangers of prioritizing profit over ethics, with Trump benefiting from a project that enabled money laundering by Colombian cartels and Russian criminals.

As Trump enters his second term, the American public must grapple with the implications of a president whose business history raises serious questions about his judgment and accountability.

The Panama Canal is a vital asset for global commerce—not a political prop for Trump’s nationalist theater.

If the United States is to maintain its credibility on the world stage, it must demand transparency and accountability from its leaders, starting with Donald Trump.

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