PANAMA IS REMOVED FROM THE EUROPEAN UNION'S LIST AS HIGH-RISK COUNTRIES

Panama, March 14, 2024. In a significant decision for the Republic of Panama, which
undoubtedly has positive effects to the country's economy, the Commission of theEuropean Union has announced the removal of Panama from the European Union's highrisk list countries for strategic deficiencies in the prevention of money laundering andterrorist financing.
Subsequent to reviewing the progress made by the country in preventing money
laundering and combating the terrorism financing to rectify the strategic deficiencies in thisarea, the Commission welcomed the significant progress presented by Panama's technicalteam in improving its anti-money laundering and terrorism financing regime.
Among them, it was noted that not only did the country strengthen the legal andregulatory framework to comply with the commitments of the strategic action plan of
deficiencies identified by the Financial Action Task Force (FATF), but also implemented
important mechanisms that demonstrated the effectiveness of the measures adopted.
The country's exclusion from this list follows a process initiated in October 2020, in which
important measures have been implemented to combat these issues.
The announcement maded today, Thursday, by the European Commission, by which it
amends, by annex, the Delegated Regulation (EU) 2016/1675, will be effective twenty days
after its publication in the Official European Union Journal enabling the country to take animportant step in the face of international transparency.
On October 27, 2023, Panama was excluded from the FATF gray list, so that today it is not
currently under the enhanced monitoring process by the FATF in the context of its currentglobal process of compliance in the fight against money laundering and terrorist financing.
In this matter, Panama has reiterated that it will continue working with the Financial Action
Task Force of Latin America (GAFILAT) to further strengthen its regime and remain at theforefront in terms of the sustainability evidenced as a result of compliance with the actionplan.
As part of the actions deployed for the exclusion from this list, the following stand out: themodification of the AML/CFT (Prevention of Money Laundering and Terrorist Financing)regulation, the adoption of the Unique Registry of Beneficial Owners, by Law 129 of 2020
and the Beneficial Owners Guide issued, which has strengthened the knowledge of theobligated parties.
The recognition of action plan by the internationals organizations of the actions
implemented by Panama, has a positive impact on multiple aspects of the panamanian
economy, since it improves the international image of the country and recognizes theapplication of high standards in transparency, facilitating the international economic andfinancial relations.

With the removal from these lists, Panama not only demonstrates its leadership in thenational and international commitment to the fight against money laundering and thefinancing of terrorism, but also maintains the effective and timely development of tangible
actions that allow the jurisdiction to maintain a competitive position in the international
financial community.
This accomplishment is the result of the joint work between the National Coordination ofPanama in the prevention of money laundering and financing of terrorism, led by theMinistry of Economy and Finance (MEF), together with the competent authorities, theprivate sector and the international community.
The Panama´s Minister of Economy and Finance, Mr. Héctor Alexander, the director ofInternational Financial and Tax Strategy of the MEF, Panama's AML/CFT nationalcoordinator and technical secretary of the National Commission against Money
Laundering, Financing of Terrorism and Financing the Proliferation of Weapons of Mass
Destruction (CNBC), Isabel Vecchio Arófulo, and Panama's ambassador to the EuropeanUnion Yavel Francis, participated in technical meetings with the team of the General
Directorate of Financial Stability, Financial Services and Capital Markets Union, theEuropean Commission Department responsible for EU policy on financial services, resulting
in this important accomplishment.