Data Protection Law in Panama: An Essential Guide to Compliance

The Law 81 of 2019 serves as the legal framework for regulating the processing of personal data in Panama. Its primary goals are to ensure the privacy of personal information, establish clear rules for its handling, and promote transparency in its usage.

Who Does This Law Apply To?

• All individuals or legal entities processing personal data within Panama, whether they are nationals or foreigners.
• Digital businesses operating in Panama that store or process data belonging to local users.
• Individuals collecting data for commercial or employment purposes.

The National Authority for Transparency and Access to Information (ANTAI) is the entity responsible for overseeing and ensuring compliance with this law in Panama. By 2025, it is expected that all businesses in Panama will fully adhere to the Data Protection Law, thereby avoiding legal penalties.

The law sets forth several principles that individuals and businesses must adhere to when processing personal data:

1. Prior Consent

The data owner must provide their explicit consent before their data is collected or processed, except in legally exempt scenarios such as judicial investigations.

2. Specific Purpose

Data can only be used for the purpose communicated to the data owner at the time of obtaining consent.

3. Transparency

Individuals have the right to know how and why their data is being used, as well as the ability to request access to this information at any time.

Data handling goes beyond mere collection and extends to ensuring their security during storage and transfer. Here are some crucial points to keep in mind:

Data Storage Security

• Implement technical and organizational measures to prevent unauthorized access, such as encryption and strong passwords.
• Avoid storing data beyond the period strictly necessary for its intended purpose.

Data Transfer

The law allows international data transfers as long as the destination ensures an adequate level of protection. However, the data owner must be informed and provide their explicit consent for such transfers. By 2025, the digital transformation in Panama and globally will make data protection even more essential for businesses.

Non-compliance with Law 81 of 2019 can result in significant penalties, serving as a strong incentive for businesses and individuals to take the law seriously:

Administrative Penalties

• Fines of up to 10,000 balboas or more, depending on the severity of the violation.
• Suspension of operations related to personal data processing.

Compensation

Affected individuals can seek compensation for damages resulting from the violation of their privacy rights.

Adhering to data laws may seem complicated at first, but it doesn't have to be. In Limitless Legal, we help you to:

• Design and implement privacy policies adapted to your business.
• Perform legal audits to assess your compliance with current regulations.
• Train your team on the proper handling of personal data.
• Resolve any legal problem related to data processing.

Trust us to make your company a role model in data protection.