Panama Removed from High-Risk List for Terrorist Financing by European Union
In a significant breakthrough for Panama’s economy, the European Union has officially removed the country from its high-risk list for strategic deficiencies in preventing money laundering and terrorist financing.
Major Milestone for Panama
The decision comes after a thorough review of Panama’s progress in addressing these issues, with significant strides made to strengthen its anti-money laundering and terrorism financing regime. This marks a major milestone for Panama, which had been working tirelessly since October 2020 to rectify its strategic deficiencies.
Significant Improvements Implemented
According to sources within the European Commission, Panama’s technical team demonstrated remarkable improvement in implementing measures to combat money laundering and terrorist financing. These include:
- Strengthening its legal and regulatory framework
- Introducing effective mechanisms to ensure the effectiveness of adopted measures
Positive Impacts on International Image and Economic Relations
The country’s removal from the high-risk list is expected to have far-reaching positive impacts on Panama’s international image and economic relations, demonstrating its commitment to transparency and adherence to high standards in anti-money laundering and counter-terrorism financing efforts.
Reaction from Government Officials
Panama’s Minister of Economy and Finance, Héctor Alexander, welcomed the news, praising the joint effort between government agencies, the private sector, and the international community. “This accomplishment is a testament to Panama’s unwavering commitment to combating money laundering and terrorist financing,” he said.
The country’s ambassador to the European Union, Yavel Francis, also expressed gratitude for the recognition, stating that it will enable Panama to take a major step forward in terms of international transparency.
Continued Commitment to International Cooperation
Panama’s removal from the high-risk list follows its exclusion from the Financial Action Task Force (FATF) gray list in October 2023. The country has reiterated its commitment to continuing to work with the FATF and other international organizations to further strengthen its regime and maintain its position as a leader in the fight against money laundering and terrorist financing.
Effective Measures Implemented
The measures implemented by Panama, including:
- Modification of its AML/CFT regulation
- Adoption of the Unique Registry of Beneficial Owners
- Issuance of the Beneficial Owners Guide
have been recognized by international organizations for their effectiveness in strengthening knowledge among obligated parties.