The Panamanian business sector assures that the efforts and results that have been achieved in such a short time have not been recognized by the FATF, which decided to put the country back on its gray list.
Although at the beginning of the year efforts were made in the country to improve controls in relation to tax evasion, as in the case of the approval by the National Assembly of the bill criminalizing tax evasion, when the amount defrauded in a fiscal period of one year is equal to or greater than $300,000, it was not enough for the country to return to the FATF grey list.
In Panama, a list of Panamanians convicted of money laundering, as well as lists issued by the US, Canada and the United Kingdom, will start to be compiled and published.
With the aim of preventing money laundering and terrorism, the National Commission against Money Laundering, Financing of Terrorism and Financing of Weapons of Mass Destruction (Cnbc) issued two resolutions.
Among the activities susceptible to laundering are sales of gold and vehicles, the purchase and sale of real estate and electronic money transfers.
From a report entitled "Mutual Evaluation of Nicaragua October 2017", by the Financial Action Group of Latin America (Gafilat):
Key findings
Nicaragua has legal and regulatory provisions, as well as an institutional framework allowing combating, at a certain level, Money Laundering (ML) and Terrorist Financing (TF). The current legal framework in force has some deficiencies that limit the general system effectiveness.
Free zone companies, lawyers, real estate companies and car dealers are among those who have time until September 29 to present the information form on their company, under the law to prevent money laundering.
From a statement issued by the Ministry of Economy and Finance:
This Friday, September 29, 2017, the deadline for the submission of the Extra Situ Assessment Form, which must be submitted by non-financial obligors, to the Intendance Supervision and Regulation of Non-Financial Subjects, is due.
The US Bureau of Foreign Assets has extended once again, this time until April 28, the license which allows Soho Mall Panama to keep looking for a potential buyer for the mall.
The new extension is a sign that the process of selling the mall has not yet been completed, a process for which a trust was created in December last year to which the assets of the company owned by Waked were transferred.To be sold, the buyer of mall must prove that it does not have any links with the Waked companies.
Gafilat has identified the outstanding tasks needed to bring up to date matters relating to financing terrorism, control of casinos and the inclusion of lawyers in the Mandated Persons category.
The ruling was made by the Financial Action Task Force for Latin America (Gafilat), who released the Mutual Evaluation Report, up to the date of the in situ visit made between November 23 and December 4, 2015.
The Committee of Independent Experts from which Joseph Stiglitz and Mark Pieth resigned early on, has presented its findings and recommendations for Panama to achieve financial transparency as requested by the international community.
The Committee of Independent Experts was appointed by the Varela administration in April this year, after the commotioncaused by the revelation of the so- called Panama Papers, which reported the existence of a complex system of offshore companies focused around the Panamanian firm Mossack Fonseca, apparently used to conceal assets belonging to public figures.The Panama Papers scandal was the culmination of a process that has taken several years, in which Panama has been systematically attacked by the international financial community, led by the OECD, pointing to the opacity of its financial system, which lends itself to tax evasion activities to the detriment of other countries and possibly also money laundering.
In order to facilitate the reorganization and sale of Balboa Bank and the brokerage firm Balboa Securities the deadline for being able to access the US financial system has been extended until February 2017.
The extension of access to the US financial system comes just weeks after it was announced that both entities will bereorganized for their subsequent sale.
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 is a member of GAFILAT and as such will be evaluated in the context of the Fourth Round of Mutual Evaluations next year (2017), based on the schedule of assessments approved by the body. Recently. Panama has made considerable efforts to improve its AML / CFT system, which included the modification of its legal system, it has been recognized by FATF; It is important to note that these measures will be the subject of the next assessment to be made on that country.
The Salvadoran private sector has asked that the deadline be extended to meet the requirements under the new legislation against money laundering, including having a compliance officer in each company.
Companies who in January 2016 do not have a compliance officer and a deputy on their payroll, will be in breach of the law against money laundering and may be unable to take out loans and conduct other banking operations.
The business sector recognizes the need to implement the standards required to be removed from the gray list, but is calling for flexibility so that businesses are not harmed.
Without calling into question the need for the country to implement and enforce the rules on transparency, financial sector companies are insisting that authorities provide them with greater flexibility in order to minimize the impact the changes will have on their businesses.
Construction companies, car sales companies and free zone companies are part of the list of entities whose activity will be controlled by the new Administration of Supervision and Regulation of Non-Financial Subjects.
The creation of the Administration for Supervision and Regulation of Non Financial Subjects is one of the requirements which the country must comply with as part of the process to get off the gray list of the Financial Action Task Force (FATF). The new regulator, led by Francisco Bustamante, also oversee the activities of "... pawn shops, casinos, exchange offices, corporations, savings and home loan societies, the National Lottery, companies engaged in marketing metals and precious stones, and security transport companies, among others. "
The Superintendency of Securities will be able to access banking information through the Superintendency of Banks, and share it with foreign regulators under the framework of international research on shares.
Marelissa Quintero, superintendent of Securities Market, told Prensa.com that "... under the law irregular transactions can be traced in the context of an investigation where there are indications of irregularities and violations in the securities market ... ". Also, she stated that "... foreign regulators may therefore request assistance from their Panamanian counterparts ...".
In Panama a deadline has been bourght forward to December 31, 2015 for companies with bearer shares to turn them into registered shares or hand them in to custody.
Along with the change in the transition period is a new date for the entry into force of Act 47 of 2013, which was originally scheduled for two years after its enactment, but will now take effect ten days after it has been published.