Panama’s Efforts to Combat Financial Crimes

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Increasing Transparency and Reducing Money Laundering Risks

Panama has been making significant efforts to increase transparency and combat financial crimes such as tax evasion and money laundering. Here are some key developments:

Beneficial Owner Registry

• Panama has passed a law requiring companies to register their beneficial owners, which is a step towards corporate transparency.
• However, the registry will be private and only accessible by authorized officials.

Suspended Delinquent Corporations

• Over 385,000 companies have been suspended for failing to pay registration fees, reducing the risk of tax evasion and money laundering.

International Cooperation

• Panama has strengthened its information-sharing agreements with other countries.
• Automatic financial account information is being exchanged under OECD standards.

Enhanced Power of Financial Authorities

• Law changes have given financial authorities the power to request accounting records from registered agents, crucial for investigating tax crimes.

Challenges and Criticisms

• Experts argue that while these steps are positive, they may not be enough to effectively combat financial crimes.
• Concerns include weak enforcement, limited access to information, and potential loopholes in the law.

Moving Forward: Ensuring Effective Implementation and Enforcement

While Panama’s efforts to increase transparency and combat financial crimes are a step in the right direction, there is still work to be done to ensure effective implementation and enforcement of these laws.