Panama Wins Back Trust: EU Removes Country from High-Risk List

Panama has regained the trust of Europe’s financial regulators. On July 9, 2025, the European Commission officially removed Panama from its list of high-risk countries for money laundering and terrorist financing.

This decision follows years of intense work by Panama’s government to fix problems exposed by the 2016 Panama Papers scandal. After the scandal, Panama faced tough scrutiny.

The country landed on international watchlists, which made it harder for businesses and banks to operate with European partners. To change this, Panama passed new laws, including Law 23 of 2025, to tighten controls against money laundering and terrorism financing.

Authorities created a central registry to track who really owns companies and forced banks to report suspicious activity. These changes convinced the Financial Action Task Force, an international watchdog, to remove Panama from its grey list in 2023.

The European Commission then reviewed Panama’s progress and found that the country now meets global standards. This move matters for Panama’s economy.

With fewer restrictions, Panamanian businesses can work more easily with Europe. Investors may feel more confident putting their money in Panama. The government hopes this will bring more jobs and growth.

Some European lawmakers still worry about Panama’s shipping registry and possible links to sanctions evasion, but most agree the reforms are real and lasting.

Panama’s removal from the list shows that a country can repair its reputation through hard work, clear rules, and transparency. For Panama, this is a fresh start in the global market.

More: Latin America news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error