Financial Crime Prevention Strategies Take Center Stage in Panama
Panama has made significant strides in preventing financial crime with the adoption of Law 23 of 2015, a regulation aimed at combating money laundering, terrorism financing, and the proliferation of weapons of mass destruction.
Creation of National Coordination for Financial Crime Prevention
At the heart of the law is the creation of the National Coordination for the Prevention of Money Laundering, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction. This body brings together specialized agencies, including the Financial Analysis Unit, as well as supervisory bodies, to coordinate efforts against financial crime.
Measures Implemented by Regulated Entities
The law also applies to a range of regulated entities, including:
- Financial institutions
- Non-financial companies
- Professionals subject to supervision
These entities are required to implement minimum tools for prevention, including:
- Due diligence on counterparties and funds
- Monitoring of client business activities
- Essential design criteria for preventive controls
- Training personnel
Measures Against Misuse of Funds and Conflict of Interest Management
In addition, the law introduces measures aimed at preventing the misuse of funds, goods or assets, as well as conflict of interest management policies for fiduciaries. Regulated entities are also required to report suspicious transactions to the Financial Analysis Unit.
Consequences of Non-Compliance
Failure to comply with the law can result in disciplinary and financial sanctions imposed by supervisory bodies. In some cases, regulated entities may be held liable for offenses committed by their employees, without prejudice to individual liability.
Procedural Provisions
The law also includes procedural provisions aimed at reinforcing its application and ensuring that measures are implemented effectively.
Conclusion
With the adoption of Law 23 of 2015, Panama has taken a significant step forward in preventing financial crime and upholding international standards on anti-money laundering and combating the financing of terrorism.