Financial Crime World

Financial Services and Products in Panama: A Regulatory Overview

Panama has a well-established financial sector with various services and products available to both local and foreign clients. However, navigating the regulatory landscape can be complex due to overlapping authorities and unclear rules.

1. Robo-Advisers

The Superintendency of the Securities Market (SMV) regulates investment advisers in Panama. However, there is currently a lack of clarity on whether these regulations apply to robo-advisers. Recent developments include:

  • A bill submitted to regulate the Sistema Nacional de Pagos, which includes non-bank or financial companies involved in payment processes.

2. Payment Processors

There are no specific laws regulating payment processors that are not banking entities. However, the Banco Nacional de Panama has authority for clearing house and supervision purposes. There is still room for new regulations within existing local regulations.

3. Fund Administrators

Fund administrators are regulated through SMV Agreement 5-2003, which requires a licence from the SMV to operate in or from Panama. A model contract may be adjusted on a case-by-case basis as long as it does not contravene applicable law.

4. Marketplaces, Exchanges, and Trading Platforms

Securities trading platforms must be licensed by the SMV according to the Securities Law, which defines “securities” as any bond, negotiable commercial instrument, or other debt security, stock (including treasury stock), recognized stock right in a custody account, share, participation unit, or participation certificate issued and guaranteed by a bank or a financial entity.

5. Payment Processors

Money transfers are regulated by Law No 48 of 2003 (“Law 48”) requiring registration as a Money Remittance Company (Casa de Remesas) with the Directorate of Financial Enterprises (DFE) of the MICI. Cross-border payments performed by banks are regulated by the SBP and certain rules apply to state-owned, general and international licensed banks performing wire transfers.

Regulatory Environment

The regulatory environment in Panama is subject to change as new laws and regulations are introduced. Businesses operating in the financial sector should stay up-to-date with the latest developments to ensure compliance with all relevant regulations.