Panama officially removed from FATF grey list

The announcement is expected to contribute to increased foreign investment and job creation in the country

PANAMA CITY, Oct. 28, 2023 /PRNewswire/ -- In a momentous decision with positive implications for the international financial community and Panamanian economy, the Financial Action Task Force (FATF) today excluded Panama from its grey list. This announcement comes following an FATF plenary meeting, held in Paris, France, in which it was determined that the Republic of Panama has strengthened its anti-money laundering and organized crime financing prevention system and implemented substantial regulations and actions that have allowed the country to take an important step forward in international transparency.

In response to Panama's removal from the FATF grey list, Panama's Minister of Foreign Affairs, Janaina Tewaney, released the following statement:

"After being added to the Financial Action Task Force (FATF) grey list in June 2019, our administration took office in July of the same year with a firm commitment to fostering a more robust framework to fight money laundering and organized crime financing, and nurture a more transparent financial system. Since then, Panama has successfully implemented several strategic measures aimed at consolidating our legislative and regulatory framework to reinforce the fight against money laundering and enhance the transparency of our financial system according to international standards. Today, these substantial efforts have been recognized by the international community with the successful removal of Panama from the FATF grey list, an endeavor many years in the making."

Benefits both nationally and internationally include:

1. Increased foreign investment and job creation: With the recognition of the progress made in preventing money laundering and countering the financing of organized crime implemented by the country, foreign investment is expected to increase, which will boost tourism, trade and the creation of new and more jobs, as well as opportunities in the country.
2. More accessible lines of credit: Cheaper and expanded lines of credit will benefit individuals and businesses seeking financing.
3. Improved banking correspondents and international relations: It will lead to a significant improvement in the relations between Panama's local banks and their international correspondents. The basic links required for financial operations will be strengthened.
4. Less pressure on the financial system: With the removal of the pressure associated with special reviews, Panama's financial system can operate more effectively and with greater confidence.
5. Benefits for the insurance and securities industry: Panama's removal from the grey list will attract the world's leading reinsurers, who will be able to establish themselves in Panama and serve the Latin American market.

Panama's removal from the FATF grey list represents a crucial milestone in the country's economic development. Minister Tewaney further commented on the future implications of the decision for Panama, stating:

"Panama's removal from the grey list solidifies Panama as an attractive, stable and safe destination for foreign investment. Panama boasts a track record second to none in the region in building 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 the continued interest of international businesses 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 additional details on the announcement, including actions carried out, please refer to the Ministry of Economy and Finances' press release here.

For media inquiries, please contact Kate Cigna at kate.cigna@edelmanega.com