The Impact of the FATF Visit to Panama

The FATF site visit was a comprehensive evaluation carried out directly by this international organization to measure Panama's progress towards complying with its action plan. In recent years, the country had been included in the FATF gray list due to non-compliance with certain key measures that prevented financial crimes such as money laundering and the financing of terrorism.

This inspection process sought to ensure that Panamanian authorities had not only designed effective controls, but also implemented them in a consistent manner. Aspects such as:

• Financial regulations and their application by supervised entities.
• The implementation of the Single Registry of Final Beneficiaries (RUBF).
• The real impact of new legal reforms on the mitigation of financial crimes.
• International Cooperation and How Panama He drove suspicious financial cases.

Passing this audit was crucial to get off the gray list and restore international confidence in the Panamanian financial system.

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Leaving the grey list has significant positive implications for Panama, both economically and reputationally. The main benefits include:

1. Increased Economic Competitiveness: Attracting foreign investment becomes easier when the country is not under international scrutiny.
2. Global Trust: International partners will perceive Panama as a more stable and transparent economy.
3. Accelerated Economic Growth: By improving its classification, the country could experience an increase in both domestic and international capital flows.

This evaluation presents a golden opportunity to demonstrate that Panama has the tools and commitment to become a reliable economic partner.

To advance in the FATF compliance process, Panama has adopted a series of important legal and administrative reforms, including:

• The creation of the Unique Registry of Ultimate Beneficial Owners (RUBF), a database designed to improve transparency regarding company ownership and identify potential financial risks.
• Strengthening Financial Supervision Institutions: This includes allocating more resources to entities such as the Financial Analysis Unit (UAF) and the Public Prosecutor’s Office.
• Updating Laws Targeting Financial Crimes: These laws aim to reduce money laundering, tax evasion, and illicit financing.

These reforms not only reflect the country's commitment to international standards but also enhance its financial system in the long term.

The reforms promoted by the FATF have generated significant changes in Panama's financial industry. Some of the main repercussions include:

• Increased banking supervision: Financial institutions have strengthened their compliance protocols to align with international standards.
• Transparency in transactions: Stronger mechanisms have been implemented for the detection of suspicious activity.
• Investor Confidence: A robust regulatory framework improves international perception and reinforces the confidence of foreign investors.

Although these changes have required internal adjustments, in the long term they strengthen the economy and position Panama as a reliable financial center.

Getting off the FATF grey list is not only a regulatory goal, but it also has significant economic implications. Key benefits include:

• Attracting new investments: Foreign companies will have greater legal security to operate in Panama.
• Expansion of strategic sectors: Areas such as fintech, logistics and international trade will receive a significant boost.
• Reaffirming global competitiveness: Panama will be able to consolidate its position as a key player in the international financial market.

These factors will contribute to greater economic stability, promoting the country's sustainable development.