THE FPB BANK Inc has been forced into liquidation  by order on Panama’s Superintendency of Banks.

The banks has links to Odebrecht and to Panama law firm Mossack Fonseca.

The superintendecy took over the bank's operations in February. It has been linked to the Lava Jato operation,

which in turn involves Mossack Fonseca.

The bank was used to open bank accounts for foreign clients which then allegedly received illegal payments from entities in Brazil, including Odebrecht.

Prosecutors have  said these payments were bribes in exchange for public contracts.

The Superintendency said that the only way in this case was liquidation, since the conditions that led to the takeover of FPB Bank have not been remedied.

This implies that there are no conditions conducive to a reorganization of the bank.

"The judicial investigations that are being carried out both in Panama and abroad do not allow a favorable condition to carry out a process of reorganization or sale of the bank," the agency said.

The bank's investment portfolio is mainly based in Brazil.