From the Ministry of Economy and Finance press release:

The Ministry of Economy and Finance considers that it is necessary for Panama that the National Assembly approve the law that increases tax evasion to a criminal offence and as a precedent for money laundering.

For more than a year the country has been debating the importance of this law to prevent Panama from falling back on the list of the Financial Action Task Force (FATF).

The Financial Action Task Force for Latin America (GAFILAT) analyzed a few weeks ago during its plenary meeting in Quito, Ecuador, Panama's technical progress in closing gaps to comply with the FATF recommendations identified in the Mutual Evaluation Report (MER) published in January 2018.

GAFILAT, in this report, has concluded that Panama is making progress in addressing the technical compliance deficiencies identified in its MER. For this reason, Recommendations 14, 19, 32 and 33 have been positively re-rated.

Read full release (In Spanish).

More on this topic

Panama: Strengthen Penalties Against Evaders

January 2019

The law that criminalizes tax evasion was approved by the National Assembly when the amount defrauded in a fiscal period of one year is equal to or greater than $300.000.

With a majority vote, Project 591, which criminalizes tax evasion in the Criminal Code and is considered a crime resulting from money laundering, was approved in the third debate, informed the Legislative Assembly.

Controversial Request to Reduce Penalties for Tax Evasion

October 2018

During the discussion of a tax evasion law project, the Panamanian business sector requests that the amount defrauded to be considered a legal crime be increased from $300,000 to $500,000.

Regarding the request made by the Chamber of Commerce, Industry and Agriculture of Panama, the Ministry of Economy and Finance (MEF) explained that "...

Latin American Gafi Supports Panama

April 2016

Amid the controversy generated by the Panama Papers, the Financial Action Task Force in Latin America has recognized the efforts made by the country in issues of transparency.

From a statement issued by the Latin American Financial Action Task Force (GAFILAT):

"... Relationship of the current situation with the Evaluation of Panama:

Panama: Tax Evasion is Not Money Laundering

March 2015

Despite being a FATF recommendation, reforms to the law on prevention of money laundering being prepared by the government will not include the definition of tax evasion as a criminal offense.

The latest update to the standard recommendations of the Financial Action Task Force (FATF) was carried out in 2012 and considers "...