Panama Law 254 of 2021: About Fiscal Transparency and Prevention of Financial Crimes

Law 254 of 2021 is a Panamanian law establishing the requirement to keep accounting records for all companies registered in the country. The objective of this law is to prevent money laundering and terrorism financing, and its compliance is monitored by Panama’s Financial Analysis Unit (UAF).

Law 254 also establishes the obligation to keep records of a company’s ultimate beneficiaries, which means that companies must maintain accurate and updated information about the individuals who own or control the company. This information must be submitted to the UAF and will be kept in a system of Ultimate Beneficiaries.

Furthermore, Law 254 establishes sanctions for non compliant companies, including fines and the possible cancellation of the company’s license. Therefore, it is important that companies registered in Panama follow these accounting obligations to avoid sanctions and comply with the laws of the country.

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At Kraemer & Kraemer, we are committed to transparency and compliance with financial regulations. If you need legal and tax advice in Panama, contact us.

Download Panama Law 254 of 2021:

Panama Law 254 of 2021

Published April 10th, 2023, as Laws on Business by Johana Sum