Financial Crime World

Panama Takes Strong Stance Against Financial Crime: What You Need to Know

The Republic of Panama has taken a significant step in its fight against financial crime by updating its criminal legislation. The updated laws aim to prevent and punish financial crimes, including fraud, embezzlement, and other illegal activities that can have serious consequences for the economy and society.

New Chapter VII: Financial Crimes

Law No. 45, published on June 4, 2003, introduced Chapter VII, “Financial Crimes”, to the Second Book of the Criminal Code. This new chapter sets forth various crimes related to financial activities and establishes penalties for those who commit these offenses.

Offenses Covered by Chapter VII

  • Unauthorized use or transfer of financial resources from a banking entity, financial corporation, or other institution
    • Penalties: imprisonment ranging from 3 to 10 years (Article 393 A)
  • Possession, unlawful use, or illegal transfer of financial resources
    • Penalties: imprisonment ranging from 4 to 7 years in prison for those who engage in such activities (Article 393 B)
  • Falsification of accounting and financial information
    • Penalties: imprisonment ranging from 4 to 7 years in prison for those who engage in such activities
  • Fraudulent approval of credits
    • Penalties: imprisonment ranging from 4 to 7 years in prison for directors, officers, or employees of a banking entity or financial corporation who approve credits without following legal regulations
  • Illegal exercise of financial activities
  • Disclosure of confidential information
  • Illegal purchase and sale of securities

Penalties for Non-Compliance

  • Authorized public accountants who destroy, hide, or falsify financial information: imprisonment up to 10 years
  • Individuals who use or reveal confidential information obtained through privileged relationships: imprisonment up to 4 years
  • Those who omit or deny providing information to supervising authorities or provide false information to hide situations of illiquidity or permanent insolvency: imprisonment up to 7 years

Conclusion

As Panama continues to strengthen its financial regulations, it is essential for individuals and corporations to understand their responsibilities and obligations under these new laws. The updated laws aim to prevent and punish financial crimes, ensuring a safer and more secure financial system for the country.