The Ministry of Economy and Finance has officially declared that Panama has been removed from the Financial Action Task Force (FATF) Grey List. This development underscores the nation’s relentless dedication to enhancing anti-money laundering and counter-terrorist financing measures, as well as its commitment to international financial transparency and cooperation. As a result, Panama is set to witness a surge in global investor confidence and open up new avenues for economic growth, further establishing its reputation as a key player in the regional financial arena.
The adoption of the Unique Beneficial Owners Register (UBOR) through Law 129 of 2020 has made significant progress, currently covering 82% of the population’s information, and the verification of relevant information is now being implemented. The country has also issued the Beneficial Owner Guide to enhance the awareness and knowledge of obligated entities, thus improving the identification and transparency of beneficial owners. In addition, the lawyers’ agreement was reinforced, strengthening the Superintendency of Non-Financial Subjects’ supervisory capacity.
Additionally, there has been a substantial increase in technical assistance provided by the Financial Analysis Unit (UAF). It has been demonstrated that the country can provide information through international requests related to tax crimes involving amounts less than 300,000 balboas, underscoring that the threshold for domestic tax evasion does not negatively impact Panama’s ability to cooperate.
Furthermore, the “Guide for the Investigation of Tax Crimes in Panama” was adopted, and the number of money laundering investigations related to predicate offenses other than drug trafficking, including foreign predicate offenses, has increased. Additionally, a guide for the investigation of tax fraud has been developed.
In conjunction with these measures, several AML/CFT-related laws were enacted since 2019: Laws 70, 116, and 123 of 2019; Laws 124 and 129 of 2020; and Law 254 of 2021. Moreover, various Executive Decrees have been issued and published from 2019 to the present, including Decrees 905 of 2019, 721 of 2020, and 13, 15, and 35 of 2022.
Panama’s Dedication to Financial Excellence
Panama’s exit from the FATF Grey List is a testament to its unwavering commitment to adhering to global standards and best practices in the realm of finance. This achievement didn’t come by chance; it was the result of meticulous planning, rigorous implementation, and sustained efforts by both government authorities and the private sector.
The FATF Grey List, which designates countries with deficiencies in their anti-money laundering and counter-terrorist financing systems, can be a hindrance to international financial transactions. However, Panama’s proactive steps have paved the way for its removal from this list, providing a renewed sense of confidence to the global business community.
A Boost to Global Investment
With Panama’s improved standing on the international stage, foreign investment is poised to see an upswing. Being free from the constraints of the Grey List will undoubtedly encourage investors to explore the abundant opportunities that Panama offers. As Panama strengthens its reputation as a stable and trustworthy financial hub, more businesses are likely to consider it a prime destination for their investments.
The Road Ahead
Panama’s journey towards securing its place on the FATF Grey List represents just one chapter in its ongoing efforts to enhance financial transparency, economic stability, and global collaboration. The nation’s financial institutions can look forward to a future marked by increased global integration and, in turn, greater economic prosperity.
Panama’s removal from the FATF Grey List is a milestone worth celebrating, signaling its commitment to excellence in the financial realm. The opportunities that lie ahead for this thriving nation are abundant, promising not only growth in international investment but also greater economic stability and security. As Panama continues to solidify its position as a regional financial powerhouse, the world watches with interest and expectation, eager to join the journey towards a brighter, more prosperous future.
For more detailed information, please read the official announcement from the Ministry of Economy and Finance: Link to the news article
