Banking and Finance Legal Services in Panama
Expert guidance on compliance, regulations, and financial legal frameworks.
Navigating Panama’s Financial Regulatory Landscape
At Paralelaw, we provide legal support to banks, financial institutions, and fintech companies to ensure full compliance with Panama’s banking regulations and international standards.
Our Banking & Finance Legal Services
Our services include:
- Regulatory compliance and licensing for financial institutions
- Anti-money laundering (AML) and know-your-customer (KYC) advisory
- Drafting internal policies and governance frameworks
- Legal support in banking transactions and audits
- Representation in financial regulatory investigations
For Banks, Fintechs, and Financial Entities
Our bilingual team advises both local and international clients, helping them operate confidently in Panama’s evolving financial sector.
Your Partner for Financial Compliance in Panama
Comprehensive legal solutions for banking and financial institutions.
AML & KYC Compliance Programs
We help design and implement anti-money laundering (AML) and know-your-customer (KYC) programs to meet local and global regulatory requirements.
Financial Regulatory Investigations
Our attorneys provide representation and strategic advice during financial investigations, ensuring your institution’s interests are protected.
Policy Drafting and Governance
We assist financial institutions in drafting internal compliance policies, employee training materials, and governance structures aligned with best practices.
FAQ
Is Panama still on the FATF grey list?
No. Panama was removed from the FATF (Financial Action Task Force) grey list in October 2023, after demonstrating significant improvements in its anti-money laundering and counter-terrorism financing framework. This removal was a milestone for Panama’s financial sector, as it eliminated the enhanced due diligence requirements that international banks had been applying to transactions involving Panama. Since the removal, Panama has continued to strengthen its regulatory framework to maintain compliance with international standards. The FATF removal has improved Panama’s reputation as a financial center and made banking relationships smoother for companies and individuals operating through Panama.
What AML/KYC regulations apply to businesses in Panama?
Panama’s anti-money laundering (AML) and know-your-customer (KYC) framework is primarily established by Law 70 of 2019. It applies to all obligated subjects including banks, securities firms, insurance companies, law firms, accountants, real estate agents, free trade zones, casinos, and virtual asset service providers (VASPs). These entities must implement customer due diligence policies, report suspicious transactions to the Financial Analysis Unit (UAF), maintain records for at least five years, and designate a compliance officer. Enhanced due diligence is required for politically exposed persons (PEPs) and higher-risk clients. Non-compliance can result in both administrative and criminal sanctions.
What role does the Superintendency of Banks (SBP) play?
The Superintendency of Banks of Panama (SBP) is the regulatory and supervisory body for Panama’s banking system. Its responsibilities include: granting and revoking banking licenses, supervising the solvency and liquidity of banking institutions, establishing prudential regulations, verifying compliance with AML/KYC requirements, and protecting depositors’ interests. Panama has one of Latin America’s largest banking centers, with over 60 banks operating under three license types: General License (full domestic and international operations), International License (operations exclusively outside Panama), and Representation License (representative offices only).
What licenses are needed to operate a fintech in Panama?
Panama does not currently have a dedicated fintech license. Financial technology companies are regulated based on the specific activities they perform: if they offer payment services, they may need SBP authorization; if they operate as securities dealers, they need an SMV license; if they handle insurance products, they require SSRP authorization. Virtual Asset Service Providers (VASPs) are subject to AML/KYC regulations under the supervision of the UAF. A comprehensive fintech regulatory framework is expected to be developed in the coming years. At Paralelaw, we advise fintech companies on the current regulatory requirements applicable to their specific business model.
How does Panama's banking secrecy work in practice today?
Panama’s banking secrecy has evolved significantly in recent years. While client information remains confidential and banks cannot disclose account details to unauthorized third parties, several exceptions now exist: compliance with AML/KYC requirements under Law 70 of 2019, requests from Panamanian judicial authorities in criminal investigations, tax information exchange under international agreements (CRS and bilateral tax treaties), FATCA reporting for US persons, and requests from the UAF in money laundering investigations. In practice, Panama maintains a strong privacy framework that protects legitimate financial privacy while complying with international transparency standards. Banking secrecy does not protect against criminal activity.
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