The Financial Action Task Force (FATF) delisted Panama from its gray list, which monitors countries associated with money laundering and terrorist financing.
Panama’s Finance Ministry announced this change in an official statement. It highlighted FATF’s recognition of Panama’s efforts to fight financial crimes.
Jorge Almengor, Deputy Finance Minister, also weighed in. He mentioned that the government initiated a broad action plan in 2019.
The aim was to better Panama’s global reputation and align with FATF standards.
FATF made this decision in a Paris meeting. They considered Panama’s submitted report and a field visit’s results.
Countries from Latin America, Asia, and the European Union supported the move. International organizations and the Latin American Financial Action Group did too.
Panama became a member of this group in 2010.
Exiting the gray list brings benefits. It’s expected to attract more foreign investment and create jobs in Panama.
To clarify, FATF has four types of lists for evaluating countries: gray, black, red, and dark gray.
Background
This decision marks a significant milestone for Panama. The country has long grappled with its image as a haven for money laundering.
Being on the gray list had deterred potential investors and affected Panama’s economy. Now, its removal could signal a vote of confidence, inviting international investments.
More investments could stimulate job growth and support economic stability.
Furthermore, Panama’s effort to get off the list shows its commitment to international standards.
The country had to work extensively on legal reforms and regulations to meet FATF’s criteria.
This experience might serve as a blueprint for other countries aiming to improve their financial oversight and international reputation.
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This article was drafted with automated assistance and reviewed before publication. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief