Panama remains “high risk money laundering center

PANAMA is still identified as a “high risk” area for money laundering and remaining on the grey list presents a threat to the competitiveness of the banking and financial center. The news comes from the Superintendency of Banks which says that removing the country from the list will be more complex than expected, as not all sectors see it as a priority issue for the economy.

Panama needs to improve legislation and controls in the financial system in order to achieve compliance with the recommendations made by the Financial Action Task Force (FATF).

In assessing compliance with FATF’s 49 recommendations, made in October 2012, Panama has failed to meet 19 of them, completely complied with 3, and partially complied with 26. Reports Capital.com.pa

Alberto Diamond, chief of the Superintendency, said “the gray list affects the perception of our reputation, constituting a threat to the competitiveness of the banking and financial center.” According to the regulator, a major financial center never appears on discriminatory lists and currently ‘we are identified as a country at high risk of money laundering.”