¨Panama is one of the most modern Latin American countries and has the most successful international banking center with over 85 banks from 35 countries¨

The Panamanian new banking law meets the standards of transparency and regulation required by leading financial centers around the world.

Panama has transformed into one of the leading countries implementing international financial regulations to stop money laundering and terrorist financial activities. The banks are participating actively in reporting all deposits and withdrawals of over $10,000, as it is done in the United States.

International Standards

The bankers are aware of the importance of keeping a good banking image; it is for this reason that they follow a strict due diligence process before opening accounts for new customers.  The new client must provide a proof of the origin of funds, specify where the funds come from and how often he/she intends to receive and send transfers from his/her account. On the other hand, banking secrecy continues to be in place.

Additionally, Panama is one of the most protected international offshore centers worldwide. The Panama Stock Exchange is one of the fastest-growing in the region.         

There is a wide range of investment opportunities in the areas of banking, investment capital financing, insurance and re-insurance.       

Panama maintains a firm responsibility to fight and maintain a proactive and efficient role against money laundering and the financing of terrorism and organized crime through its various governmental bodies and intends to cooperate with other jurisdictions to do so.

The Panamanian banking system has accomplished effectively the following:

  • International cooperation
  • International Standards
  • Competitive advantages.
  • Modern legislation

In addition, important legislation has been passed by the Panama Legislative Assembly and sanctioned by the President, resulting in relevant Cabinet Decrees being issued by the Executive power.

Law 41 of October 2, 2000, which defines the crime of money laundering with regard to the predicate offenses: qualified fraud, illegal arms trafficking of humans, kidnapping, extortion, embezzlement, corruption of public officers, acts of terrorism, international theft, trafficking of vehicles and drug trafficking.

Law 42 of October 2, 2000, which establishes as "accountable persons" in the observance of due diligence for banks, trust companies, currency exchange offices, money transfer service providers, non-bank loan companies, savings and loan cooperatives, securities exchanges, securities clearing houses, securities firms, securities brokers and investment managers.

Law 45 of June 4, 2003, by which Chapter VII to Title XII of the Second Book of the Penal Code is added therein under the heading of Financial Crimes, fraud, illegal money transfers, concealing, deleting and counterfeiting accounting books and related documents. Disclosure of classified information, omitting or denying information, price discrimination, signing of fraudulent agreements, collecting financial means without proper authorization, among other types of crimes with their respective sanction.

Executive Decree No. 78 of June 5, 2003, which modifies the name of the Financial Analysis Unit (FAU) to Financial Analysis Unit for the Prevention of Money Laundering and the Financing of Terrorism and extends its duties and responsibilities to assets related to the financing of terrorism.

Law No. 48 of June 26, 2003, which regulates the operations of money remittance companies.

Law No. 50 of July 2, 2003, by which Chapter VI, denominated Terrorism, is added to Title VII of Book II of the Penal Code and sets forth other provisions, This Law defines the crimes of terrorism and the financing of terrorism, turning both into autonomous crimes in our legislation.

Panama understands the importance of international coordination and cooperation to fight money laundering and financing of terrorism and understands that includes both the public and private sector.

For more information about Banking, Investing or Doing Business in Panama, please contact us.
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