Panama cannot strictly be called an emerging market. In this country has the most modern and successful international banking centers in Latin America, with 95 banks from 35 countries represented. Panama’s new comprehensive banking law (Decree No. 9) meets the standards of leading financial centers around the world for transparency and regulation, and conforms to the statutes of the Basel Commission. Some of the banks present in the center are: Citi, HSBC, Dresdner, Banesco, Scotia Bank, Banco Bilbao Vizcaya Argentaria, International Commercial Bank of China, Banque Sudameris and more.
The Republic of Panama maintains a firm commitment to fight and maintain a proactive and efficient role against money laundering and the financing of terrorism and organized crime through its different governmental bodies and in close cooperation with other jurisdictions.
Panama´s banking system has effectively achieved the following, among others factors:
International Standards
International cooperation
Modern legislation
Competitive advantages.
International Banking Center in Figures
At December 31, 2010 reflected a continued dynamism in the banking supported by its strength both in financial indicators such as adequate levels of solvency. The assets of the banking center at the end of 2010 amounted to B/.71,931 million, while assets are located in the System $ 57.566 million.
Domestic credit to private sector amounts to B/.24,337 million, showing an increase of 13.3% compared to the same period a year earlier. This dynamic is supported by a favorable trend in the lines: industry (31.9%), commerce (22.7%), construction (12.7%), mortgage (9.8%) and personal consumption (8.7%).
New loan disbursements for the period January to December 2010 are located in B/.17, 183 million registering a growth of 13.9% (B/.2, 098 million) compared to the same period last year. Similarly, disbursements of new loans for the month of December 2010 are located in B /: 1,882 million, an 52.7% growth, $ 649 million more than December 2009.
Total deposits as of December 2010 System add B/.44, 195 million, which grew by 5.5% compared to the same period a year earlier. The largest share of deposits is concentrated in the deposits of individuals (77.3%), followed by bank deposits (12.6%), and the officers (10.1%).
Financial System Liquidity provides solid and reliable levels by displaying a basket of highly liquid assets and diversified. Liquidity ratio for banks stood at 69.48%, well above the 30% established by Panamanian banking regulations.
The solvency of the Panamanian Banking Center remains strong when the Heritage funds represent on average 16.46% of risk weighted assets, up from 8% required under the legal framework.
Legal Framework
Since 2008 Panama has a new Banking Law, l it gives the Superintendency of Banks more power. It focuses mainly on three aspects:
Increased national and international monitoring
Customer Protection
Strengthening the regulator.
Among the aspects related to monitoring points are highlighted as an extension of supervision by the Superintendency of Banks does the banking groups consolidated their operations in Panama. It also includes regulatory powers to holding companies that consolidate operations in Panama, an oversight they call "reasonable" non-banking corporation or financial that may be at risk of infection on Banking Group in Panama.
On the issue of banking consumer protection among other things, authority to settle claims up to $ 20,000 that cannot be settled between banks and consumer banks. It accelerates the process of bank resolution and ensures prompt payment to depositors under $ 10,000 through the sale of liquid assets available.
As the entity is increased independence and autonomy in administrative and budgetary management and administrative career includes the banking supervisor.
Following regulations have been made to assist the region and beyond in the areas relevant to improving the competitiveness of the domestic banking system
Law 41 of October 2, 2000, which defines the crime of money laundering with regard to the predicate offenses: qualified fraud, illegal arms trafficking of humans, kidnapping, extortion, embezzlement, corruption of public officers, acts of terrorism, international theft, trafficking of vehicles and drug trafficking.
Law 42 of October 2, 2000, which establishes as "accountable persons" in the observance of due diligence for banks, trust companies, currency exchange offices, money transfer service providers, non-bank loan companies, savings and loan cooperatives, securities exchanges, securities clearing houses, securities firms, securities brokers and investment managers.
Law 45 of June 4, 2003, by which Chapter VII to Title XII of the Second Book of the Penal Code is added therein under the heading of Financial Crimes, fraud, illegal money transfers, concealing, deleting and counterfeiting accounting books and related documents. Disclosure of classified information, omitting or denying information, price discrimination, signing of fraudulent agreements, collecting financial means without proper authorization, among other types of crimes with their respective sanction.
Executive Decree No. 78 of June 5, 2003, which modifies the name of the Financial Analysis Unit (FAU) to Financial Analysis Unit for the Prevention of Money Laundering and the Financing of Terrorism and extends its duties and responsibilities to assets related to the financing of terrorism.
Law No. 48 of June 26, 2003, which regulates the operations of money remittance companies.
Law No. 50 of July 2, 2003, by which Chapter VI, denominated Terrorism, is added to Title VII of Book II of the Penal Code and sets forth other provisions, This Law defines the crimes of terrorism and the financing of terrorism, turning both into autonomous crimes in our legislation.
This proven commitment by the Republic of Panama against money laundering and financing of terrorism includes both the public and private sector, guarantees that Panama shall continue in this crucial endeavor and fully understands the importance of international coordination and cooperation.
