Full text of District Notices (Federal Reserve Bank of Dallas) : Handling of Panamanian Government Accounts, Circular No. 88-20

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Federal Reserve bank

OF DALLAS
W IL L IA M

H. W ALLACE

DALLAS, TEXAS 75222

FIRST V IC E P R ES ID EN T
AND CH IE F O PER ATING O FFIC E R

March 4, 1988
Circular 88-20
TO:

The Chief Executive Officer of
all financial institutions in the
Eleventh Federal Reserve District
SUBJECT
Handling o f Panamanian Government Accounts
DETAILS

The Board of Governors of the Federal Reserve System has released a
notice from the U.S. State Department concerning the issuance
of a
certification regarding the liability of Federal Reserve Banks and insured
banks with respect to their handling of Panamanian Government Accounts.
The State Department further requested the distribution
certification to all insured banks in this district.

of the

The Certification reads as follows:
I hereby certify, in accordance with 12 U.S.C. §632,
to any Federal Reserve Bank or any insured bank that
His Excellency Juan B. Sosa, Ambassador of the Repub­
lic of Panama to the United States of America, is
recognized by me as being the accredited representa­
tive of the Republic of Panama to the Government of
the United States, that he has duly certified to me by
note dated March 2, 1988, ... that he is the sole
person having authority to receive, control, or dis­
pose of any property held in any such Federal Reserve
bank or insured bank from or for the account of the
Republic of Panama or any central bank thereof,
including Banco Nacional de Panama and Caja de
Ahorros, and that his authority with respect to such
property is accepted and recognized by me.
This certification shall be notified to the Board of
Governors of the Federal Reserve System, and shall be
given such other dissemination as is appropriate to
its purpose.
/s/ John C. Whitehead
Acting Secretary of State
For additional copies of any circular please contact the Public Affairs Department at (214) 651-6289. Banks and others are
encouraged to use the following incoming WATS numbers in contacting this Bank (800) 442-7140 (intrastate) and (800)
527-9200 (interstate).

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

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The Board has also stated in pertinent part:
Acting in accordance with section 25(b) of the
Federal Reserve Act, Acting Secretary of State John C.
Whitehead has accepted and recognized Ambassador Juan
B. Sosa, the accredited representative of the Republic
of Panama to the United States, as having the sole
authority to receive and transfer property of the
Republic of Panama and certain related entities held
at any Federal Reserve bank or insured bank__
In
this case, Ambassador Sosa has recognized that his
authority does not extend to withdrawals or transfers
from accounts of the Republic of Panama, except for
transfers to other accounts of the Republic of Panama
in the United States.
The certification issued under section 25(b) is
applicable to any Federal Reserve bank or insured
bank. Section 25(b) of the Federal Reserve Act (12
U.S.C. 632) provides that any transfer or other dispo­
sition by a Federal bank or insured bank of property
held in accounts of a foreign government to or upon
the order of the person recognized by a State Depart­
ment certification issued pursuant to section 25(b),
is conclusively presumed lawful and constitutes a
discharge and release of any liability of the Federal
Reserve bank or insured bank with respect to such
property...

MORE INFORMATION
For further information, please contact the Legal Department at (214)
651-6228.
Sincerely yours