Financial Crime World

Panama’s Crypto Bill Faces Hurdles Amid Concerns Over Money Laundering

The Panamanian government has been working on a crypto asset bill aimed at streamlining regulations and preventing monopolization in the cryptocurrency market. However, the bill faces resistance from President Laurentino Cortizo due to concerns over money laundering.

President’s Concerns

Cortizo has stated that he will not sign the bill unless it includes rigid anti-money laundering (AML) checks to reduce the risk of money laundering. The President’s concerns stem from the fact that the bill does not adequately adhere to global regulations on AML and combating the financing of terrorism, as recommended by the Financial Action Task Force (FATF).

Panama’s Status

Panama has been placed on FATF’s list of countries with strategic deficiencies in curbing financial crimes, including money laundering and terrorist financing. Cortizo has vowed to implement the task force’s guidance and increase monitoring of money laundering activities.

Regulatory Efforts

Despite these concerns, Panama is pushing forward with its plans to regulate cryptocurrencies. The government is developing a digital wallet that will enable citizens to use cryptocurrencies safely for transactions such as paying fees and taxes. To ensure the integrity of the cryptocurrency market, government and financial watchdogs will regulate crypto-asset trading to prevent illegal activities.

Compliance Requirements

Businesses operating in the cryptocurrency space must also take proactive steps to secure their operations and comply with regulatory requirements. Shufti Pro’s Anti-Money Laundering (AML) screening solution can help businesses stay compliant with regulatory standards while preventing money laundering. The company’s AML screening solution uses thousands of AI algorithms to run background checks on customers against 1700+ global watchlists in less than a second with 98.67% accuracy.

Key Takeaways

  • Panama’s crypto bill faces resistance from President Cortizo due to concerns over money laundering.
  • The bill does not adequately adhere to global regulations on AML and combating the financing of terrorism, as recommended by FATF.
  • Businesses operating in the cryptocurrency space must prioritize AML and KYC solutions to mitigate financial risks and avoid regulatory fines.

Conclusion

As Panama navigates the complexities of regulating digital currencies, it is crucial that businesses operating in this space prioritize AML and KYC solutions to mitigate financial risks and avoid regulatory fines. By doing so, they can ensure the integrity of the cryptocurrency market and maintain a secure and compliant operation.