Panama Confronts Financial Crime and Corruption: The Battle Over Beneficial Ownership Registry
A Crossroads in the Fight Against Financial Crime and Corruption
Panama is at a critical juncture in its efforts to combat financial crime and corruption, with the implementation of a beneficial ownership registry sparking intense debate about individual privacy rights. However, experts argue that transparency is essential to protecting private property and preventing illicit activities.
The Importance of Transparency
A public registry of ultimate beneficial owners is crucial in preventing financial crime and corruption. By making this information publicly available, Panama can ensure that its economy remains secure and prosperous for all citizens.
Benefits of a Beneficial Ownership Registry
- Prevents Money Laundering: A public registry helps identify individuals who may be involved in illicit activities, making it more difficult to launder money.
- Fights Corruption: By tracking the ownership of companies and assets, Panama can prevent corrupt officials from hiding their ill-gotten gains.
- Promotes Accountability: A transparent beneficial ownership registry holds individuals accountable for their actions, reducing the risk of financial crime.
Balancing Transparency with Individual Privacy
Critics argue that making beneficial ownership information publicly available could put individuals at risk, particularly in cases where they may be involved in high-risk industries or have personal characteristics that make them vulnerable to violence or intimidation. However, proponents of transparency point out that exceptions can be made, as seen in the United Kingdom’s approach, which restricts access to sensitive data.
Exceptions to Public Disclosure
- Sensitive Data: Exceptions can be made for individuals who may be at risk due to their involvement in high-risk industries or personal characteristics.
- National Security: Access to beneficial ownership information may be restricted if it poses a threat to national security.
- Privacy Protections: Panama’s Law 81 on protection of personal data provides a framework for balancing transparency with individual privacy.
The Role of Law 81 in Balancing Transparency and Privacy
Panama’s Law 81 on protection of personal data has added a new layer of complexity to this debate. The law is guided by principles such as loyalty, purpose, proportionality, truthfulness, accuracy, security of data, transparency, confidentiality, legality, and portability. However, it is worth noting that the processing of personal data for purposes related to crime prevention, investigation, detection, or prosecution does not fall within the scope of this law.
Key Principles of Law 81
- Loyalty: The protection of personal data must be loyal to the individual.
- Purpose: Personal data can only be processed for specific purposes that are clearly defined.
- Proportionality: The processing of personal data must be proportionate to the purpose.
- Truthfulness and Accuracy: Personal data must be accurate, complete, and up-to-date.
Conclusion
As Panama continues to navigate these challenges, one thing is clear: a public registry of ultimate beneficial owners is essential in preventing financial crime and corruption. By prioritizing transparency and accountability, Panama can ensure that its economy remains secure and prosperous for all citizens.