Panama Ranks High in Global Money Laundering and Terrorist Financing Index

Panama has been identified as one of the countries with the highest risk level of money laundering and terrorist financing in Latin America, according to a 2021 report by the Basel AML Index.

Risk Level Assessment

The Basel AML Index ranked Panama with a score of six out of ten, placing it among the top-risk countries globally. This assessment is based on publicly available sources such as:

Financial Action Task Force (FATF)
Transparency International
World Bank
World Economic Forum

Key Indicators Used in Assessment

The Basel AML Index combines 16 key indicators related to:

Corruption
Financial standards
Political transparency
Rule of law

These indicators serve as a starting point for further investigation into money laundering and terrorist financing risks in different countries.

Concerns over Panama’s Ability to Prevent Financial Crime

Panama’s high ranking on the index highlights concerns over the country’s ability to prevent and combat financial crime, including:

Money laundering
Terrorist financing

The report serves as a warning to policymakers and regulatory bodies to strengthen their efforts in addressing these issues and protecting Panama’s financial system from illicit activities.