Financial Crime World

PANAMA ELIMINATED FROM EUROPE’S LIST OF HIGH-RISK COUNTRIES FOR TERRORIST FINANCING

The European Union (EU) Commission has made a significant move by removing Panama from its list of high-risk countries for terrorist financing. This decision is a major victory for the country, which has made substantial strides in strengthening its anti-money laundering and counter-terrorism financing (AML/CFT) regulations.

AML/CFT Regulations

In 2020, Panama began implementing measures to combat money laundering and terrorist financing, including:

  • Modifying regulation on preventing money laundering and terrorist financing
  • Adopting a Single Registry of Final Beneficiaries
  • Issuing a Guide on Final Beneficiaries

These efforts have been recognized by international organizations as effective measures against financial crimes.

EU Commission’s Evaluation

The EU Commission’s evaluation praised Panama’s technical team for making important progress in improving its AML/CFT regime. The country has demonstrated its commitment to fighting financial crimes and maintaining a competitive position in the global financial community.

Positive Impact on Economy

Panama’s exclusion from the list is expected to have a positive impact on multiple aspects of the Panamanian economy, including:

  • International image: Panama’s leadership in combating money laundering and terrorist financing will help maintain its international reputation.
  • Economic relations: The country’s economic relations with the EU and other countries are expected to improve.
  • Competitive position: Panama’s commitment to fighting financial crimes will help maintain its competitive position in the global financial community.

FATF Grey List Removal

This announcement follows Panama’s removal from the Financial Action Task Force (FATF) grey list last October, after making significant progress in addressing strategic deficiencies identified by the agency. Panama has reiterated its commitment to working with FATF and other international organizations to continue strengthening its AML/CFT regime.

Quote from Isabel Vecchio

Isabel Vecchio, National Coordinator of Panama’s AML/CFT program, welcomed the decision, saying:

“This is a major achievement for our country and demonstrates our commitment to transparency and international cooperation.”

Effective Date

The EU Commission’s announcement amends Delegated Regulation (EU) 2016/1675 and will take effect twenty days after its publication in the Official Journal of the European Union.