Panama’s Path to Global Competitiveness: Addressing Compliance Gaps

As a leading financial hub in Central America, Panama is striving to solidify its position as a major player in the region. However, to achieve this goal, it must address several areas where it falls short in complying with international standards.

Key Areas for Improvement

1. Criminalizing Tax Evasion

• Bringing tax crimes under the scope of money laundering offenses
• Enhancing penalties for individuals and entities involved in tax evasion

By strengthening its laws against tax evasion, Panama can effectively combat this crime and maintain a clean financial reputation.

2. Improving Corporate Vehicle Transparency

• Enhancing disclosure requirements for corporate vehicles created in Panama
• Implementing robust due diligence procedures to prevent money laundering and terrorist financing

Transparency is essential in maintaining trust with international partners and investors.

3. Strengthening AML/CFT Supervision

• Improving the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) supervisory framework
• Implementing risk-based tools to ensure effective supervision

A robust AML/CFT system is crucial in preventing financial crimes and maintaining Panama’s credibility.

4. Enhancing Tax Information Exchange

• Strengthening timely exchange of tax information with foreign counterparts
• Implementing automatic exchange of information (AEoI) agreements with key partners

Cooperation with international partners through tax information exchange is vital for maintaining a fair and transparent financial environment.

Conclusion

By addressing these critical areas, Panama can enhance its compliance with international standards and solidify its position as a regional center for finance and business.