Panama removed from EU high-risk list, reinforcing its international reputation

The European Parliament approved on July 9 the amendment to Regulation 2016/1675, which includes the removal of Panama from the list of high-risk third countries in matters related to anti-money laundering and counter-terrorist financing. This decision confirms the effectiveness of the reforms implemented in beneficial ownership registries, financial supervision, and international cooperation.

A milestone built on technical progress

Local representatives and analysts have highlighted that Panama had been on an upward trajectory since its removal from the FATF “grey list” in 2023. The European vote now acknowledges that Panama’s due diligence measures and anti-money laundering controls meet the standards required by Brussels.

Immediate benefits

• Increased regulatory confidence: European banks and businesses will no longer apply enhanced due diligence measures to transactions originating from Panama, reducing both costs and execution times.

• Attraction of capital: The improvement in the country’s risk profile facilitates the flow of foreign direct investment and encourages the establishment of regional headquarters seeking a sound financial hub in the Americas.

• Boost to corporate services: With reduced compliance barriers, estate planning structures and investment vehicles involving European components can now be administered more efficiently from Panama.

Implications for the Panamanian business sector

This development strengthens Panama’s position as a hub for international services and creates new opportunities for alliances with financial institutions across Europe. Fiduciary firms, banks, and corporate service providers will be in a better position to offer competitive cross-border solutions, provided they maintain robust “know your customer” protocols and continue to report suspicious transactions.

In summary, Panama’s removal from the EU’s high-risk third-country list translates into tangible advantages for investment and expansion initiatives. Should you require tailored guidance, please do not hesitate to contact us.

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