The Ministry of Economy and Finance (MEF), as coordinating entity, through the Technical Secretariat of the National Commission against Money Laundering, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction (CNBC) and the Directorate of International Financial and Fiscal Strategy (DEFFI), developed a strategy based on dialogue, consensus and respect, among the competent authorities in matters of anti-money laundering, the financing of terrorism and the proliferation of weapons of mass destruction (AML/CFT /CPF), and the private sector, implementing a set of important reforms, which today are the fundamental pillars to continue strengthening our system of prevention, control and repression, such as:
- Adaptation of the legal framework through reforms, regulations and guides, to ensure the alignment of the AML/CFT/CPF system with the FATF Standards, including compliance with due diligence, effective, proportional and dissuasive sanctions, classification of tax offenses and strengthening of obligations regarding final beneficiaries, among others.
- Development of various risk assessments to ensure that mitigation strategies are appropriate and support reporting entities in risk-related decision-making.
- Timely access by the competent authorities to the information of the final beneficiary through the different mechanisms, either by request to the resident agents or by the Single Registry of Final Beneficiaries (RUBF). In addition, the information verification process began, thereby guaranteeing that it is true and kept up-to-date.
- Significant increase in the use of intelligence products, as well as parallel financial investigation, to ensure a greater number of money laundering investigations and prosecutions, particularly in high risk and threat cases, including money laundering investigations with tax offense as precedent.
Minister Alexander, in his speeches on Tuesday June 20 before the FATF International Cooperation Review Working Group (ICRG), and on June 23 before the plenary session of the International Financial Action Task Force ( FATF), in Paris, France, expressed that “Panama is prepared to receive the on-site visit of the Joint Group of the Americas, and that we want the entire international community to witness our tangible and concrete results, as well as the sustainability thereof”.
Similarly, and as part of the work agenda, the head of the MEF, accompanied by the National Coordinator on issues of prevention of Money Laundering, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction (AML/CFT) , and CNBC Technical Secretary, Isabel Vecchio Arófulo, Ambassador Issamary Sánchez, the GAFILAT Secretariat and the technical team, met with T. Raja Kumar, FATF President, accompanied by Elisa de Anda Madrazo, FATF Vice President and staff of the FATF Executive Secretariat, before whom the commitment at the highest level to ensure the sustainability of the measures implemented to improve the AML/CFT system was reiterated, including the uploading of beneficial ownership information to the registry, guaranteeing that it is truthful and that the competent authorities have timely access, adding that we are committed to continue working hand in hand with GAFILAT and the entire FATF Global network.
The FATF meetings began on Monday, June 19, and after the co-chairs of the Joint Group of the Americas presented the last face-to-face report with Panama, carried out at the beginning of May, they recommended an on-site visit. before the members of the FATF ICRG, who approved it, in order to verify in person the implementation and sustainability of the AML/CFT reforms and measures implemented in the field, in addition to reiterating that the political commitment is maintained.
With this visit to the country by the Joint Group of the Americas, Panama will demonstrate the institutional strengthening that has been developed and will also demonstrate the national commitment regarding the prevention of money laundering, financing of terrorism and financing of the proliferation of weapons of massive destruction.
Given this approval of the on-site visit, delegations from member countries of the FATF global network, from America, Asia, Europe, as well as from International Observer Organizations, present at the ICRG meeting, recognized Panama’s progress, extending congratulations to the country by obtaining the on-site visit, which represents an important step to get out of the gray list.
Panama has shown great progress in the prevention of money laundering and financing of terrorism, obtaining compliance with the 15 actions of its Action Plan considered to date as “Largely Accomplished”. With this achievement, we demonstrate that the commitment to the country acquired from the highest level continues; highlighting that policies for the prevention and prosecution of money laundering and terrorist financing play a key role not only for the protection of the economic and financial order of a country, but of an entire region, indicated Isabel Vecchio, Technical Secretary of CNBC.
As part of the official visit, Minister Alexander held meetings at the headquarters of the Movement of French Entrepreneurs, MEDEF, an organization that brings together more than 10 professional federations and business leaders from all sectors of France, as well as representatives of the Center Organization of the OECD, with the director of the Center for Fiscal Policy and Administration of the OECD, Manal Corwin, and with Éléonore Caroit, deputy of the National Constituent Assembly of France, with whom he shared about the development of Panama, highlighting the progress of the country on tax issues, the importance of gender equality, climate change, transparency, economic sustainability, foreign investment opportunities in Panama, Panama’s participation in the Inclusive Framework on BEPS, coordinated by the OECD and the sustained growth of our economy.
