Panama: Criminal Code Articles 345-347

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Panama has implemented strict laws to combat corruption and bribery. The Criminal Code outlines severe penalties for individuals who engage in these illegal activities.

Individuals

• A person who offers, promises or delivers a bribe to a public servant will be punished with imprisonment ranging from three to six years (Article 347).
• Public servants engaged in passive bribery will face imprisonment for two to four years (Article 345).
• Bribery of foreign officials or employees of international organizations is punishable by a term of imprisonment ranging from five to eight years (Article 350).

Corporate Entities

• Corporate entities used or created to commit crimes, including bribery, will be subject to the following penalties:
  • Cancellation or suspension of license or registration for up to five years.
  • Fine of no less than $5,000 but not exceeding double the injury or benefit obtained.
  • Total or partial loss of tax benefits.
  • Inability to contract with the state for up to five years.
  • Dissolution of the corporate entity.

Compliance Programs

• Having a compliance program in place does not constitute a defense against bribery charges.

Leniency Agreements

• There is no explicit provision for deferred prosecution agreements in Panamanian legislation. However, cooperating witnesses may be eligible for leniency agreements under Law No. 4 of 2017, which allows for sentence and/or penalty reduction for accused individuals who provide evidence against other offenders.

Key Takeaways

• Panama has strict laws in place to combat corruption and bribery.
• Individuals found guilty of bribery can face imprisonment ranging from two to eight years.
• Corporate entities used or created to commit crimes can face severe penalties, including dissolution.
• Having a compliance program in place does not constitute a defense against bribery charges.