A mixture of indignation and helplessness was what left in the hearts of the vast majority of Panamanians the decision of the International Financial Action Task Force (Gafi), which after reviewing the progress of the regulatory framework of Panama and its effectiveness in the implementation of the practices for the prevention of money laundering and terrorist financing, he chose to include Panama again in the Compliance Document and under monitoring, the so-called “gray list” of that international organization.

And it is not for less the malaise that generated this decision, since it implies ignoring all the efforts and advances registered by the country to adapt its norms and institutions to the international standards of prevention and fight against money laundering.

The list of actions taken by the country is long and demonstrates the commitment of the Panamanian State to comply with the demands of an increasingly globalized and transparent world, reinforcing the regulatory framework of the financial system and a large number of the economic sector that previously did not It had to comply with the policies of prevention and fight against money laundering.

But let’s analyze the facts in numerical terms to get an idea of the work done by Panama: In the 2012-2014 period, of the 49 recommendations made by Gafi only 4 were fulfilled, for an average compliance of 8%, while in the period 2017-2018, of 45 recommendations were met 40, for an average compliance of 87%.

Now let’s look at concrete facts that show that Panama not only limited its regulatory framework, but has made significant progress in the supervision of economic agents called to implement them, which has resulted in sanctions for those who have incurred in some fault :

1. Today, the Superintendence of Banks of Panama has 65 professionals specialized in the area of prevention of money laundering (250% increase), carrying out 615 inspections (200% increase), executing 67 sanctioning processes and applying 30 sanctions for a total of $ 6 million from 2015 to 2019.

2. The Intendance of Supervision and Regulation of Non-Financial Subjects is created in April 2015, with the enactment of Law 23 regulating 11 new sectors. The team is made up of 55 professionals who have received specialized training and have conducted 485 supervisions focused on high-risk sectors. The Municipality has carried out 68 sanctioning processes and imposed 16 sanctions for a total of $ 1 million from 2015 to 2019.

3. The Financial Analysis Unit (UAF), authorized in 2015 by Law 23, has carried out 1,059 international cooperations of the final beneficiary.

4. The Public Prosecutor’s Office increased from 28 to 118 (321%) the investigations of a previous crime for money laundering other than drug trafficking; reports an increase of 27 to 47 (74% increase) in convictions in money laundering investigations and increased the amount of money seized from $ 4 million to $ 242 million in the periods 2012–2015 and 2016 – 2019.

5. In 2018, the National Assembly passed Law 70 that criminalizes tax evasion and strengthens the regulatory framework on the final beneficiary.

Moreover, Panama, in response to Gafilat’s objections, pledged to reinforce the effectiveness of the changes made in its regulatory framework and will apply measures such as: Ismael Gerli

1. Strengthen the National Risk Assessment, including terrorist financing risk and fiscal crime.

2. Identify the senders of unlicensed money, applying a risk-based approach in the non-financial sector, and ensuring effective sanctions.

3. Ensure the verification and updating of the information of the final beneficiary and strengthen effective mechanisms for monitoring offshore entities, assess the risks of misuse of legal entities and prevent the misuse of shareholders and nominal directors.

4. Ensure the effective use of inputs generated by the UAF, demonstrate greater capacity to investigate money laundering involving foreign tax crimes, provide greater international cooperation with such crime, and continue investigations with emphasis on high-risk areas.

In conclusion: Panama has not only complied with the vast majority of Gafi’s recommendations, but has pledged to deepen its application and effectiveness, even though we know that many of these measures can have some negative impacts for certain economic sectors, but attending the best interests of the country.

That is why it is worth asking: What else does the Gafi of Panama want? Why, instead of recognizing the country’s progress, they continue to present new demands? To what extent are these requirements legitimate? How many of the countries that make up Gafi comply with 100% of the recommendations that the agency demands from Panama?

In any case, we already know that Panama will have a period of one year to comply with the pending recommendations, and with which the Gafi would like to establish, to leave the “gray list”, so it will correspond to the incoming president, Laurentino Cortizo, define a new strategy to face this situation and defend the interests of the country.

Editorial

Edition 942

From June 24 to 30, 2019

Financial capital