Banking Transactions: More Controls in Panama

From May 2019, foreign customers will have to declare to local system banks that their funds meet their country's tax requirements.

Thursday, April 25, 2019

The Superintendence of Banks of Panama (SBP) approved Agreement 02-2019, which implements the recommendations of the Financial Action Task Force, which consists of expanding the required due diligence measures of banks with their customers.

Regarding foreign customers, the agreement explains that "... Affidavit indicating that the inflows and outflows made to the financial institution comply and will comply with tax obligations in their country or countries of tax residence.

Carlos Berguido, executive president of the Panama Banking Association, told that "... the guild was consulted during the drafting of the agreement, which seeks to standardize actions by enacting the law that criminalizes fraud and lists it as a predicate crime for money laundering."

Berguido added that "... in a broader context, this and other requirements imposed as a measure of risk aversion make customers have an unattractive experience and a comprehensive review of due diligence procedures is needed."

Banks and fiduciaries will have until May 15, 2020, to comply with Articles 1 and 2 of this Agreement, the document explains.

See Agreement 02-2019.

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