Panama is officially removed from the FATF Gray List

2023-10-28 00:28:10

PANAMA CITY (ots/PRNewswire) – This announcement is expected to contribute to increased foreign investment and job creation in the country

In a significant decision with positive implications for the international financial community and the Panamanian economy, the Financial Action Task Force (FATF) today removed Panama from its Gray List. This announcement follows a FATF plenary meeting in Paris, France, which noted that the Republic of Panama has strengthened its anti-money laundering and anti-terrorist financing system and implemented key regulations and measures that have made the country a major step forward in the path to international transparency.

In response to Panama’s removal from the FATF Gray List, Panama’s Foreign Minister, Janaina Tewaney, the following declaration:

“After being placed on the Financial Action Task Force (FATF) Gray List in June 2019, our government took office in July of that year with a strong commitment to establishing a more robust anti-money laundering and counter-terrorism financing framework and a more transparent one promote the financial system. Since then, Panama has successfully implemented several strategic measures aimed at consolidating our legal and regulatory framework to strengthen the fight against money laundering and improve the transparency of our financial system in line with international standards. Today, with the removal of Panama from the FATF Gray List, these significant efforts have been recognized by the international community. We have been working towards this moment for many years.”

Benefits at both national and international levels include:

Foreign Investment Growth and Job Creation: With the recognition of the progress the country has made in preventing money laundering and combating terrorist financing, foreign investment is expected to increase. This will boost tourism, trade and job creation and open up new opportunities in the country.
More accessible lines of credit: Cheaper and expanded credit lines will benefit individuals and businesses seeking financing.
Improved relationships with international correspondent banks: Relations between Panama’s local banks and their international correspondent banks will improve significantly. The fundamental connections required for financial operations are strengthened.
Less pressure on the financial system: By removing the pressure associated with special audits, Panama’s financial system can operate more effectively and with greater confidence.
Benefits for the insurance and securities industry: The removal of Panama from the Gray List will attract world-leading reinsurers who can establish themselves in Panama and serve the Latin American market.

The removal of Panama from the FATF Gray List represents a critical milestone in the country’s economic development. Minister Tewaney also commented on the future impact of the decision on Panama, stating:

“The removal of Panama from the Gray List rehabilitates Panama as an attractive, stable and safe destination for foreign investment. Panama has a track record of building key businesses unrivaled in the region, from financial services to maritime industries to logistics and shipping. As one of the leading investment destinations in Latin America, Panama welcomes continued interest from international companies across a wide range of sectors. “The government of President Cortizo remains committed to maintaining a legacy of the highest international standards for the benefit of all Panamanians and the international community.”

Further details on this announcement, including the actions taken, can be found here in the press release from the Ministry of Economy and Finance.