Panama Law 23, enacted on April 27, 2015, adopts measures to prevent money laundering, financing of terrorism, and the financing of the proliferation of weapons of mass destruction, and establishes other provisions. This law includes a range of strict measures and regulations designed to prevent and combat these illegal activities, bolstering the integrity of the country’s financial system.
Notably, the law imposes specific obligations on various entities, including financial institutions, casinos, real estate agents, and insurance companies, mandating the implementation of rigorous due diligence procedures. These protocols entail thorough customer identity verification, meticulous record-keeping practices, comprehensive risk assessments, and prompt reporting of any suspicious transactions to the appropriate authorities.
One of the key provisions of Law 23 is the establishment of the Financial Analysis Unit (FAU) as a specialized entity responsible for receiving, analyzing, and disseminating information related to suspected cases of money laundering and terrorism financing. The FAU acts as a central hub for intelligence gathering and sharing, enhancing Panama’s ability to detect and prevent financial crimes.
The law emphasizes the importance of international cooperation and provides mechanisms for exchanging information with foreign authorities to combat transnational illicit activities effectively.
To ensure compliance, Law 23 imposes penalties for non-compliance or violation of its provisions. These penalties can include fines, suspension or revocation of licenses, and even criminal sanctions in severe cases. By implementing this legislation, Panama aims to safeguard its financial system’s integrity, protect against illicit financial flows, and actively contribute to global efforts in combating money laundering, terrorism financing, and the financing of weapons of mass destruction.
Stay Compliant with Panama Law
Don’t risk penalties or legal issues related to money laundering, terrorism financing, and proliferation of weapons of mass destruction. Ensure your business remains fully compliant with Panama Law 23 by consulting with our team of experts.
Contact us today to understand how we can help you navigate the legal requirements and stay on the right side of the law.
Download Panama Law 23 of April 27, 2015 (in spanish):