Panama

New Documents

Panama, United States Establish Task Force Targeting Money Laundering, Corruption

The U.S. Embassy in Panama announced the signing of a memorandum of understanding establishing an Anti-Money Laundering/Anti-Corruption Task Force consisting of Panamanian prosecutors, law enforcement, and regulatory officials to be trained by the FBI.

August 19, 2020

GAFILAT: Panama’s AML/CTF Progress Results in Re-Ratings on Four FATF Recommendations

The Financial Action Task Force of Latin America published a second enhanced follow-up report of Panama’s anti-money laundering and counterterrorist financing regime, highlighting that the country was re-rated on four Financial Action Task Force Recommendations.

September 11, 2019

IMF Encourages Panama to Enhance AML Framework

August 2, 2019

Panama Rejects EC Proposal to Include it on High Risk AML/CTF Jurisdictions List

February 18, 2019

GAFILAT Releases Follow-Up Report for Panama

January 24, 2019

News

Midweek Roundup: Germany Ordered Independent Review of FIU’s Shortcomings, Pandora Papers Fallout Commences, and More

U.S. lawmakers plan AML rules for lawyers and accountants, U.S. beneficial-ownership exemptions create gaps for financial crime, and more, in the midweek roundup.

October 6, 2021

Midweek Roundup: Panama Penalizes Bank of China, Circle Breached US Sanctions, and More

Binance chief pledges governance revamp, U.K. issues warning over CoinBurp, and more, in the midweek roundup.

July 28, 2021

Midweek Roundup: FinCEN Issues AML Enforcement Guidance, Goldman Sachs Settles Malaysia 1MDB Probe, and More

August 19, 2020

Midweek Roundup: HSBC Closes Hong Kong Protesters’ Account, Malta’s Pilatus Bank Allegedly Misled Regulators, and More

January 8, 2020

Midweek Roundup: Commerzbank Raided in German Tax Probe, Panama Shutters Lender, and More

September 11, 2019

Enforcement Actions

0 Items Found

Key Documents

Panama Criminalizes Money Laundering

May 22, 2007

Panama Requires CIP Procedures for Banks, Stock Brokers

October 2, 2000

Panama Amends Legislation Authorizing Seizure of Criminal Goods, Proceeds

August 10, 2007

Panama Outlines Penalties for Violating Money Laundering Laws

October 2, 2000

Important Facts

  • The U.S. State Department labels Panama a major money laundering country. Panama’s strategic geographic location; dollarized economy; status as a regional financial, trade, and logistics hub; and favorable corporate and tax laws render it attractive for exploitation by money launderers. Money laundered in the jurisdiction primarily comes from illegal activities committed abroad, including drug trafficking, tax crimes, and smuggling of people and goods. Panama is a drug transshipment country due to its location along major trafficking routes. Criminals often launder money via bulk cash smuggling and trade at airports and seaports, through shell companies, casinos, cryptocurrencies, and the 12 active free trade zones in the country. Legal entities formed and registered in the country are at high risk for laundering activity since the use of nominee shareholders and directors is prevalent and Panama lacks a mechanism to determine beneficial ownership. Other factors hindering the country's fight against money laundering include a lack of capacity to identify bulk cash shipments, inexperience with money laundering investigations and prosecutions, inconsistent enforcement of laws and regulations, corruption, and an under-sourced judicial system. In 2019, the government passed the Ultimate Beneficial Ownership Law to create a registry of actual beneficiaries for legal entities. However, implementation of the law was delayed due to the COVID-19 pandemic.
-Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 15 High : 0
Largely Compliant : 23 Substantial : 2
Partially Compliant : 2 Moderate : 6
Non-Compliant : 0 Low : 3

A "graylisted" country as of June 21, 2019. Panama's technical compliance was most recently re-rated in an Aug. 22, 2019 follow-up report

BASEL i

Rank : 82/110
Score : 6.0/10

TRANSPARENCY INTERNATIONAL i

Rank : 111/179
Score : 35/100

Tax Justice Network i

Rank : 15/133
Score : 72/100