Panama Removed from EU’s List of High-Risk Countries
The European Commission has announced that Panama will be removed from its list of high-risk countries due to significant progress made in improving its anti-money laundering (AML) and countering the financing of terrorism (CFT) regime.
Background
In October 2020, Panama began a process to address strategic deficiencies identified by the Financial Action Task Force (FATF). The country implemented various measures to strengthen its legal and regulatory framework, including modifications to its regulation for preventing money laundering and terrorist financing.
FATF Grey List Removal
On October 27, 2023, Panama was removed from the FATF grey list, recognizing the country’s efforts in improving its AML/CFT regime. The removal from the list followed a thorough evaluation by the Commission, which found that Panama has implemented important mechanisms to demonstrate the effectiveness of its measures.
Key Developments
- Panama has strengthened its legal and regulatory framework to comply with commitments outlined in its action plan on strategic deficiencies identified by FATF.
- The country has implemented various mechanisms to combat money laundering and terrorist financing, including:
- Modifications to its regulation for preventing money laundering and terrorist financing
- Adoption of a Single Registry of Final Beneficiaries
- Issuance of the Final Beneficiary Guide
Impact on the Economy
The recognition by international organizations of Panama’s efforts is expected to have a positive impact on multiple aspects of the Panamanian economy. The country’s improved international image will facilitate international economic and financial relations, solidifying its position as a competitive player in the international financial community.
Quotes
- “This decision recognizes the important progress made by Panama in strengthening its AML/CFT regime,” said Isabel Vecchio, National Coordinator for AML/CFT.
- “We welcome this decision and highlight the importance of continued cooperation between countries to combat money laundering and terrorist financing,” added Isabel Matuzs, European Union Ambassador to Panama.
The removal from the list will take effect twenty days after its publication in the Official Journal of the European Union.