Debate Resumes on Immobilization of Shares

Panama's government is to reactivate the discussion on a bill to immobilize bearer shares, with extensive consultation with the sectors involved.

Friday, July 5, 2013

The bill has the support of most international bankers and lawyers. However in the view of attorney Adolfo Linares, the law assumes submitting to the demands of the Organization for Economic Cooperation and Development (OECD), an organization which is trying to limit the jurisdiction of Panama's financial center in order to promote the interests of its member countries.

Meanwhile, the lawyer Jaime Aleman, a member of the International Bar Association (IAA) said the Association is aware "that the immobilization of bearer shares is a relatively innocuous measure, which on the whole will not affect the platform of international services that Panama offers ".

"The non-ratification of this law would be fatal for Panama, and would lead to the country being included in the OECD´s blacklist during the peer meeting of the Global Forum to be held in the month of September," he added.

¿Busca soluciones de inteligencia comercial para su empresa?



More on this topic

Panama Approves Immobilization of Bearer Shares

July 2013

Panamanian Congress has finally approved the law which imposes a safekeeping regime on bearer shares.

From a press release issued by the National Assembly of Panama:

Draft Law No. 568, which regulates shares by allowing their immobilization was approved by the plenary of the National Assembly on its third reading.

Immobilization of Bearer Shares to Resume in July

May 2013

Panamanian Congress will resume discussion of the bill that immobilizes bearer shares.

Frank De Lima, Minister of Economy and Finance, has sent a report to the Organization for Cooperation and Development (OECD) to report on the postponement of the project in response to a letter from the Organization requesting a report on Panama's efforts in this area.

Advances in Project for Custody of Bearer Shares

January 2013

Under pressure from the OECD, the government of Panama is preparing a bill to immobilize bearer shares.

Panamaamerica.com reports that "The Organization for Economic Cooperation and Development (OECD) has asked the country to immobilize, within it’s financial system, bearer shares, a measure which will allow Panama to be excluded from the list of discriminatory countries."

The Business of Shares Custody

October 2012

The immobilization of bearer shares planned by the government of Panama in order to meet OECD requirements, has opened up business opportunities for banks.

The "Bill to adopts a system of custody for shares issued to the bearer" being studied by the Martinelli administration, includes the creation of the position of custodian of bearer shares, which could be a lawyer, a bank , a brokerage firm or fiduciary who knows and has separate records of the owners of these instruments. Failure to have these records would mean fines for custodians.

ok