On July 9, the European Parliament approved the removal of the Republic of Panama from the list of high-risk jurisdictions, which includes countries with strategic deficiencies in their national regimes in the fight against money laundering and terrorist financing.
Context and reasons for exclusion
- Panama was originally included on this list in October 2020, due to allegations of deficiencies in its anti-money laundering and counter-terrorism financing system.
- Thanks to the adoption of legal reforms, improvements to the regulatory framework and effective actions in financial supervision and control, the European Commission recognized significant progress.
- The decision was also supported by the recommendation of the Financial Action Task Force (FATF), which previously removed Panama from its list in October 2023.
Among the immediate benefits for Panama of being removed from that list, we find:
- Strengthening the country’s reputation and image internationally.
- Greater confidence from foreign investors.
- Greater ease in carrying out financial and commercial transactions with European entities.
- Competitiveness of the financial and logistics center.
- Strengthening trade and the economy.
The official removal from the list reinforces the international community’s confidence in the measures and actions implemented by Panama related to money laundering and the financing of terrorism, making Panama a country that complies with international standards in this area.
The approval by the European Parliament comes from a recommendation by the European Commission, based on technical information from the Financial Action Task Force (FATF), which removed Panama from its grey list in 2023.
Future Commitment
Panama reaffirmed its commitment to continue strengthening its transparency and cooperation policies, remaining vigilant against money laundering risks and the financing of terrorism.
This exit represents an important milestone for Panama, consolidating its financial openness and its integration into the international economy.
With information gathered from the Arias firm
