IMF warns of consequences if Panama stays on gray list
The International Monetary Fund (IMF) warned of the possibility that commercial and financial transactions with Panama would be subject to ” intensive due diligence ” if the country fails to complete in October the action plan it is carrying out with the Financial Action Task Force (FATF) to get off its gray list.
The alert reiterates what the FATF itself said last June when it updated Panama’s progress in the action plan. Until then, Panama had completed 11 of the 15 points, pending the dissuasive sanctions, the improper use of legal persons and structures, the nominal directors in corporations, and the full implementation and operation of the Registry of Final Beneficiaries.
Panama has been on the list since June 2019. Technically it is the list of jurisdictions that the FATF puts under monitoring with an action plan for its strategic deficiencies in the fight against money laundering and the financing of terrorism, but commonly known as the gray list.
The action plan for Panama was originally supposed to be completed in January 2021, but by that time, the country did not show significant progress, so it remains on the list.
Black list hint
At the time, the Gafi presented ” significant concerns ” about the non-compliance of Panama. The FATF president at the time, Marcus Player, even hinted that if the action plan is not completed, Panama could be included in the black list, which only includes Iran and North Korea.
The Minister of Economy and Finance, Héctor Alexander has said that Panama is working hard to get off these lists.
In the IMF evaluation published weeks ago, the financial institution also urged the country to complete an action plan to get out of the list. The FATF reiterated in its assessment that if by October Panama did not satisfactorily complete all the recommendations of the action plan, they would have to ask all the jurisdictions under its umbrella for comprehensive risk analysis for commercial relations and transactions with Panama. Also weighing on the country is the inclusion in the list of the European Union of non-cooperative countries in tax matters, especially for the exchange of tax information.
