Positively Transparent

Panama has a proven history as an attractive destination for foreign investment thanks to its central geographic location as a commercial hub, its business-friendly and transparent environment serving both international and domestic companies as well as its secure and stable government system. Panama boasts a track record second to none in the region in building critical business sectors from financial services to the maritime industry to logistics and shipping, driven in large part by the iconic Panama Canal. As one of the leading investment destinations in Latin America, Panama welcomes the continued interest of international businesses from a wide variety of sectors.

PANAMA’S COMMITMENT

Over the past several years, Panama has successfully implemented strategic measures aimed at consolidating its legislative and regulatory framework to reinforce the fight against money laundering, terrorist financing and tax evasion, and to enhance the transparency of its financial system according to international standards.

These substantial efforts have been recognized by the international community with the successful removal of Panama from the FATF grey list in October of 2023.

2016

  • Panama signed the convention on Mutual Administrative Assistance in Tax Matters (MAC) and bilateral agreements with the U.S. to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act

2018

  • Panama implemented the OECD’s project on Base Erosion and Profit Shifting (BEPS) and began to efficiently implement automatic information exchange.
  • Panama signed the Multilateral Competent Authority Agreement (MCAA)

2019

  • Panama initiated automatic financial account information exchange under the OECD Common Reporting Standard
  • Panama established a Protocol of the Office of the Superior Prosecutor for International Affairs regarding criminal activity preceding money-laundering committed abroad and financing of terrorism and criminalized guilty unlicensed money remitters

2020

  • Panama approved Law 129, which establishes the regulatory framework for the creation of the private and unique system of registration of final beneficiaries in Panama.
  • Panama joined the FATF’s Automatic Exchange Peer Review Group as one of only 32 members entitled to voice and vote.

2021

  • IMF expresses it will assist Panama in its removal from the FATF list.
  • The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) entered into force for Panama

2022

  • Panama issued Decree No. 35, effectively implementing measures within Law 23 of 2015 to prevent money laundering, terrorism financing, and the financing of weapons of mass destruction.
  • Panama presented its progress and good practices in combatting corruption to the Organization of American States (OAS) during the Thirty-Eighth Meeting of the Committee of Experts of the MESICIC.

2023

  • The FATF announced the removal of Panama from its grey list, solidifying Panama as an attractive, stable, and safe destination for foreign investment.

Panama’s Efforts

Panama works relentlessly to ensure the highest international standards of financial transparency through global collaboration, training initiatives and information exchange. These efforts involve strategic partnerships and agreements with the international community including the World Bank, the Multilateral Competent Authority Agreement (MCAA)‎, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), the Mutual Administrative Assistance in Tax Matters (MAC) and the Financial Action Task Force (FATF), as well as bilateral cooperation with key partners including the U.S. and the EU.

Panama’s commitment has been exemplified through active national and international engagement, enlisting leading global experts, law enforcement authorities and specialists on Money Laundering and Financing of Terrorism. This close collaboration and collective expertise have been instrumental in comprehensively reviewing Panama’s plans and processes, with the country promptly adopting recommendations and significantly mitigating illegal money remittance activities.

With Panama having been removed from the FATF gray list, it resumes its rightful reputation as a trusted hub for international investment and business development. Over the past few years, Panama has demonstrated its commitment to the fight against money laundering and the financing of terrorism, but also continues to carry out timely and effective actions. We look forward to welcoming continued interest from the international financial community. – Canciller Janaina Tewaney Mencomo

TRANSPARENCY

A TOP PRIORITY FOR PANAMA