Panama’s Efforts to Improve Transparency

Panama has been making strides in improving transparency and addressing concerns about financial secrecy and tax evasion. In this article, we will discuss the key points that highlight Panama’s progress and challenges.

Implementing a Beneficial Owner Registry

In 2019, Panama passed a law requiring companies to disclose their owners and shareholders. However, the registry has yet to be implemented. While this is a positive step towards transparency, its effectiveness depends on whether it will be public and searchable.

• The benefits of a beneficial owner registry include:
  • Improved transparency and accountability
  • Reduced risk of tax evasion and money laundering
  • Enhanced reputation for Panama as a business-friendly country

Suspended Delinquent Corporations

Panama has suspended over 385,000 companies that failed to pay registration fees. This move reduces the risk of tax evasion and money laundering, making it more difficult for illicit activities to take place.

• The benefits of suspending delinquent corporations include:
  • Reduced risk of financial crimes
  • Increased revenue from registration fees
  • Improved business environment

Increased International Cooperation

Panama has strengthened its information-sharing agreements with other countries and adopted OECD standards for exchanging financial data. This move demonstrates Panama’s commitment to international cooperation and transparency.

• The benefits of increased international cooperation include:
  • Enhanced reputation for Panama as a responsible global citizen
  • Improved access to financial data and intelligence
  • Increased trust among business partners

Changes to Law Enforcement

New laws allow authorities to request accounting records from registered agents and increase penalties for non-compliance. This move demonstrates Panama’s commitment to enforcing its anti-money laundering and tax evasion laws.

• The benefits of changes to law enforcement include:
  • Improved ability to detect and prevent financial crimes
  • Increased deterrence for individuals and companies engaging in illicit activities
  • Enhanced reputation for Panama as a country that takes financial crime seriously

Concerns about Effectiveness

Experts and transparency advocates express concerns that the registry may not be effective if it is not public and searchable, and that more needs to be done to target companies suspected of money laundering or tax evasion.

• The challenges facing Panama include:
  • Ensuring the effectiveness of the beneficial owner registry
  • Targeting companies suspected of financial crimes
  • Maintaining a business-friendly environment while addressing international concerns