This announcement is expected to help increase foreign investment and create jobs in the country.
PANAMA CITY, October 28, 2023 /PRNewswire/ — In a momentous decision with positive implications for the international financial community and the Panamanian economy, the Financial Action Task Force (FATF) today excluded Panama from its gray list. This announcement follows a plenary meeting of the FATF, held in Paris, Francein which it was determined that the Republic of Panama strengthened its system for preventing money laundering and financing organized crime and implemented substantial regulations and actions that allowed the country to take an important step forward in terms of international transparency.
In response to Panama removal of the FATF gray list, Panama Minister of Foreign Affairs, Janaina Tewaneyissued the following statement:
“After being added to the Financial Action Task Force (FATF) gray list in June 2019, our administration took office in July of the same year with the firm determination to foster a stronger framework to combat money laundering and the financing of organized crime, and to foster a more transparent financial system. Since then, Panama has successfully implemented several strategic measures aimed at consolidating our legislative and regulatory framework to strengthen the fight against money laundering and improve the transparency of our financial system according to international standards. Today, these substantial efforts have been recognized by the international community with the successful elimination of Panama from the FATF gray list, an effort that has been underway for many years. »
Benefits both domestically and internationally include:
- Increased foreign investment and job creation: With the recognition of the progress made in the prevention of money laundering and the fight against the financing of organized crime implemented by the country, foreign investments are expected to increase, which will boost tourism, trade and the creation of new jobs , as well as opportunities in the country.
- More accessible lines of credit: Cheaper and expanded credit lines will benefit individuals and businesses seeking financing.
- Improved correspondent banking and international relations: This will lead to a significant improvement in relations between Panama local banks and their international correspondents. The basic links necessary for financial operations will be strengthened.
- Less pressure on the financial system: With the pressure associated with special exams removed, Panama The financial system can operate more efficiently and with greater confidence.
- Benefits for the insurance and securities industry: Panama exit from the gray list will attract the main global reinsurers, who will be able to establish themselves in Panama and serve the Latin American market.
Panama The removal of the FATF gray list represents a crucial step in the economic development of the country. Minister Tewaney further commented on the future implications of the decision for Panamastating:
“Panama the removal of the gray list is consolidated Panama as an attractive, stable and secure destination for foreign investment. Panama has unparalleled experience in the region in creating critical business sectors, from financial services to the maritime industry to logistics and shipping. As one of the leading investment destinations in Latin America, Panama welcomes continued interest from international companies from a wide variety of sectors. President Cortizo’s administration remains committed to maintaining a legacy of the highest international standards for the benefit of all Panamanians and the international community.
For further details on the announcement, including the actions taken, please refer to the press release from the Ministry of Economy and Finance. here.
For media inquiries, please contact Kate Cigna has kate.cigna@edelmanega.com
SOURCE The government of Panama
