A joint investigation by Reuters, NBC News, and Global Witness has alleged that Donald Trump's Panama hotel, the Trump Ocean Club International Hotel and Tower, was used to launder money from drug cartels, Russian organised crime, and people smuggling. The 70-storey skyscraper, which opened in 2011, earned Trump up to $13.9 million in management fees and royalties in the last three years, but many of its condominiums appear largely empty.
The reports claim that buyers purchased units not to live in but to launder illicit funds, and that the project attracted individuals accused of fraud, corruption, and kidnapping. While there is no evidence that the Trump Organization or family broke the law or knew of criminal backgrounds, Global Witness stated that Trump benefited from laundered proceeds from Colombian drug trafficking.
Roger Khafif, the Panamanian developer who pitched the deal to Trump in 2005, said Trump wanted the project as a 'baby' for his daughter Ivanka. She selected Alexandre Ventura Nogueira, a Brazilian former car salesman, as lead broker. Ventura's firm sold 350 to 400 units worth about $100 million. Ventura, now a fugitive after being arrested for unrelated real estate fraud, told investigators that some of his clients were connected to the Russian mafia.
The Trump Organization distanced itself from the tower, stating it was not the owner, developer, or seller, and had no involvement in unit sales or broker retention. However, experts note that due diligence in Panama, perceived as highly corrupt, is crucial to avoid liability for turning a blind eye to wrongdoing. The special counsel Robert Mueller is reportedly examining Trump's business dealings as part of his investigation into Russian election interference.
