Panama Removed from European Union’s List of High-Risk Countries
The European Commission has made a significant decision by removing Panama from its list of high-risk countries due to strategic deficiencies in preventing money laundering and terrorist financing. This removal is a result of Panama’s thorough evaluation after being removed from the Financial Action Task Force (FATF) grey list.
Positive Impact on Economy
Panama’s removal from the EU’s list has a positive effect on the country’s economy. The Commission welcomes Panama’s progress in improving its anti-money laundering and countering the financing of terrorism regime, which includes strengthening its legal and regulatory framework to comply with FATF commitments.
Key Progress Made by Panama
- Strengthening legal and regulatory framework
- Implementing measures to combat money laundering and terrorist financing
- Modifying regulations for prevention
- Adopting a Single Registry of Final Beneficiaries
- Issuing a Final Beneficiary Guide
These actions have strengthened the knowledge of obliged subjects and demonstrated the effectiveness of the measures adopted.
Background
Panama’s removal from the EU’s list follows a process that began in October 2020, during which important measures were implemented to combat money laundering and terrorist financing. The announcement made today by the European Commission will enter into force twenty days after its publication in the Official Journal of the European Union, allowing Panama to take an important step towards international transparency.
FATF Grey List Removal
Panama’s removal from the FATF grey list last October has also contributed to this decision. Panama is no longer subject to intensified monitoring by the agency and has reiterated its commitment to working with the Financial Action Task Force of Latin America (GAFILAT) to continue strengthening its regime and remain at the forefront in terms of sustainability.
International Recognition
The recognition by international organizations of Panama’s actions results in a positive impact on multiple aspects of the country’s economy, improving its international image and recognizing high standards in transparency, facilitating international economic and financial relations.
Leadership in Fighting Money Laundering and Terrorist Financing
Panama’s removal from these lists demonstrates its leadership in the fight against money laundering and terrorist financing, as well as its ability to maintain an effective and timely development of tangible actions that keep it competitive in the international financial community.