The Swiss bank, Julius Baer, reported that it will close its representative offices in the Central American country and will concentrate on other larger markets in the region such as Brazil.

The statement of the financial institution was made after Matthias Krull, a former employee of the bank in Panama, pleaded guilty in the U.S. two months ago for money laundering in a case of diversion of funds from the Venezuelan state-owned oil company PDVSA.

Laestrella.com.pa reports that “… The embezzlement was for $1.2 billion, according to international media reports, which ended in an international investigation against the bank that ultimately resulted in Krull’s sentence. The bank has not been charged for the crime.”

The article adds that “… The bank undertook a review of its business in the region, which resulted in the decision to close its operations in Panama and Peru. It declared to the Financial Times that will continue to serve its clients and will offer its ‘key employees’ a transfer to one of its headquarters, whether located in Chile or the Bahamas.”