International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Saturday, May 13, 2017

Panama National Assembly set to approve new AML Law (LAW 412, 23 of 2015)

Law 412 proposes the establishment of a legal platform for the consolidation of Panama as an international fiduciary center and place it at the forefront of international transparency FATF logo standards. Read here official publication in Spanish.

Draft Law 412, which amends Law 1 of 1984 on the business of trust and updates Law 23 of 2015 on prevention of money laundering, financing of terrorism and financing of proliferation of mass destruction weapons was approved in the third debate in the National Assembly.

The project establishes new parameters for compliance companies, strengthening the Administration Office for Supervision and Regulation of Non-Financial Subjects, granting the Superintendence of Banks of Panama supervisory responsibilities of other financial subjects, among other aspects contemplated in the initiative.

In addition, Draft Law 412 proposes the establishment of a legal platform to promote the local market as a necessary step for the consolidation of Panama as an international trust center and place it at the forefront of international transparency standards.

The fiduciary business in Panama is one of the most important of the financial sector, the rule that governs it dates back to 1984, so it was necessary to update it, in order to improve the supervision and regulation of this market whose trust fund reaches 22 thousand million dollars.

The approval of Draft Law 412 is part of Panama's actions to strengthen its legal framework and promote transparency, and will be evaluated in May by the Latin American Financial Action Task Force (GAFILAT).

See US 2016 INCSR Report

See arrest by Panama police of Mossack and Fonseca founding partners because of their alleged involvement with money laundering for Brazil's Petrobras corruption scandal.

http://lawprofessors.typepad.com/intfinlaw/2017/05/panama-national-assembly-set-to-approve-new-aml-law-law-412-23-of-2015.html

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