From May 2019, foreign customers will have to declare to local system banks that their funds meet their country's tax requirements.
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.
Limiting the fees charged in Costa Rica and establishing a law that defines market limits in Guatemala are part of the attempts being made in the region to regulate the use of credit cards.
A law proposal presented last January before the Legislative Assembly of Costa Rica, aims to regulate the percentage of the commission paid by businesses for credit or debit cards.
From January 1st, 2020, the concentration of Sulphur in the fuel consumed by maritime transport vessels must not exceed 0.5%, a limit that until now was at 3.5%.
The international modifications related to the supply of fuel oil or marine fuel, which were approved by the International Maritime Organization (IMO), will apply to all vessels sailing in the world.
For Nicaraguan stockbreeders, the imposition of a 30% tariff on beef imports from Panama violates the conditions established in the trade agreement between the two countries.
In Panama, representatives of the Nicaraguan Chamber of Beef Export Plants (Canicarne), reported that the imposition of tariffs and other non-tariff measures for Nicaraguan meat have stockbreeders and industrialists concerned.
Excessive regulation, increased tax charges and geopolitical uncertainty are the main risks to business growth in the region for Central American CEOs.
PricewaterhouseCoopers (PwC) conducted the Global CEO Survey in the Central American region, in which a group of business executives from Central American countries and the Dominican Republic shared their opinions about their economic expectations.
To correct alleged price distortions in the local market, the Panamanian government plans to regulate imports of beef from Nicaragua.
The Ministry of Agricultural Development (MIDA)'s plan is to establish new import rules, which will aim to correct the "distortion in the price of beef paid for the local product."
The regulations in force for Central America allow two methods of certifying the weight of cargo moving through ports in the region.
The new regulations in force since July 1 oblige entities transporting containerized cargo by sea tocertify its weight under the International Convention for the Safety of Life at Sea (Solas). The problem cited by exporters is the increase this will have on costs, in addition to infrastructure problems faced in some ports in the region.
The way to prevent rising tuition fees in private educational institutes is not by regulating them but by raising the quality of public education.
EDITORIAL
It is a market issue.If the public education systems performs poorly, as is a general trend in Central America, it is obvious that private institutions, in many cases companies that have a legitimate desire for profit, will emerge in order to meet the demands of parents who want better education for their children.
The only countries in America where mobile phone prices are still regulated are El Salvador and Costa Rica. It is no coincidence that these countries are among the last in the rankings for speed of mobile internet services.
EDITORIAL
And it is no coincidence that these two countries also suffer from the existence of the heaviest controlling bureaucracies in the Central American isthmus, with clear consequences for the slow adaptation to changes experienced by the global economy, particularly globalization.
The mania for regulatory bureaucracy which feeds its own existence is taking away flexibility in the use of resources in the economy, slowing development.
EDITORIAL
It will be impossible for Central Americans to make progress if every new business activity has to be authorized by a public official.In the region the practice is not that you can do anything that is not forbidden, but rather the general culture indicates that you can only do what the State authorizes you to do.
On October 12 and 13 representatives from the banking and financial sector will be gathering together in Panama City to discuss issues relating to regulation, business and investment.
The International Finance Summit is an event being organized by the Banking Association of Panama and will be held at the Hotel Trump Ocean Club Convention Center.
Increased operating costs because of risk controls imposed by the US have led to correspondent banks avoiding working with small banks.
Maintaining small structures at the same time as paying high costs in order to meet the standards required internationally, primarily in the United States, is no longer viable for banks who want to remain profitable.
Accepting that Uber, Airbnb and crowfunding are here to stay, the National Markets and Competition Commission of Spain is in favor of reducing requirements for traditional operators and not adding any new regulations for incoming competitors.
EDITORIAL
The incursion of digital platforms that connect users through collaborative schemes has invaded economies and made life easier for users, but has caused complications for governments whose laws are one step behind the progress being made in markets.
If free zones -with their tax breaks and other privileges- are good for the economy, why isn't the entire country made into a free zone?
EDITORIAL
Why not provide companies founded with Central America capital the same benefits and privileges enjoyed by foreign firms operating under free zone regimes? The job creation and contribution to the economy that can be made by companies in free zones because they enjoy these privileges should be able to come from business founded with Central American capital as well, which in contrast to foreign firms, have to deal with excessive regulations and bureaucracy in the States of Central America.