Law 21 of 10 May of 2017, establishes the rules for the regulation and supervision of trustees and the trust business and dictates other provisions. This law is a significant piece of legislation that has the potential to make the trust industry in Panama more transparent and accountable.
The law creates a new regulatory body, the Superintendency of Trusts, to oversee the trust industry in Panama. All trustees must be licensed by the Superintendency of Trusts, and they must keep records of all trust transactions and have adequate internal controls in place. Trustees who violate the law may be subject to fines or imprisonment.
The law also includes provisions designed to prevent money laundering and terrorist financing. For example, trustees must conduct due diligence on their clients and must report suspicious transactions to the authorities. The law also requires trustees to maintain records of all trust transactions for a period of five years.
Law 21 is a positive step towards strengthening the trust industry in Panama. The law will encourage the trust industry to be transparent and accountable, and it will help prevent money laundering and terrorist financing. The law is still relatively new, so it is too early to say what the long-term impact will be. However, the law has the potential to make Panama a more attractive destination for legitimate trust business.
Get the legal help you need
If you have any questions about the Law 21 of May 10, 2017, please do not hesitate to contact us. We would be happy to answer your questions and provide legal advice on how to comply with the law. Send us a note to info@kraemerlaw.com
Download Law 21 of 2017 regulating the Trust Business in Panama (in spanish):
Law 21 of 2017 regulating the Trust Business in Panama
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