Panama planning reinsurance center

PANAMA is on the way to diversifying and expanding its international financial activities.

A law intended to turn the country into an international center for reinsurance, providing companies in this sector with the same benefits as under the Law on Multinational Corporations is on the way.The aim of the project is to leverage the competitive advantages offered by Panama and have a law that addresses the latest trends in supervision and regulation, It could be ready before the end of the year. 

"In order to attract large reinsurers, the Act includes the same incentives currently offered by the Law on Multinational Corporations (SEM), including facilities for tax, migration and labor" reported Capital.com.pa. In addition, the new law will prevent these companies being used for illegal activities such as money laundering.

"The IDB's participation in this project comes in the form of loans worth $200 million which this lender granted to Panama in order to reduce fiscal risk and maintain stability in the financial system."