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In a significant development for international financial relations, the European Parliament today approved Delegated Act C(2025) 3815, which officially removes the Republic of Panama from the European Union’s list of high-risk third countries with strategic deficiencies in anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks.
This decision, adopted during the plenary session in Strasbourg, amends Delegated Regulation (EU) 2016/1675 and reflects the EU’s formal recognition of Panama’s efforts to strengthen its regulatory and institutional framework in line with global standards.
Institutional Reform and International Acknowledgment
The removal marks a milestone in Panama’s long-standing reform agenda, driven under the leadership of President José Raúl Mulino and coordinated through the Ministry of Foreign Affairs and the Ministry of Economy and Finance (MEF).
According to the government’s official statement, this recognition is the result of sustained efforts to improve transparency, enhance regulatory oversight, and increase the effectiveness of Panama’s AML/CFT regime. These reforms were designed to align with the recommendations of international bodies such as the Financial Action Task Force (FATF).
“This outcome is a testament to the country’s commitment to meeting the highest international compliance standards and rebuilding trust with our global partners,” said officials from the Ministry of Foreign Affairs.
Key Benefits for Panama’s Economy and Financial Sector
The delisting from the EU high-risk jurisdictions list brings several immediate and long-term advantages for Panama’s financial and economic sectors:
- Improved international reputation and institutional credibility
- Greater confidence from foreign investors, supporting capital inflows and business expansion
- Simplified financial and commercial transactions with EU-based institutions, as enhanced due diligence requirements will no longer apply
- Increased competitiveness of Panama’s financial and logistics center, particularly for banking, insurance, shipping, and trade services
- Boost to import/export operations, facilitating smoother trade flows and reduced compliance friction
Impact on Tax Transparency and Regulatory Cooperation
This move not only strengthens Panama’s global positioning as a compliant financial center but also enhances its cooperation credentials with tax authorities and financial regulators in the EU and beyond. It could pave the way for deeper integration into international financial systems and facilitate bilateral agreements in tax, trade, and regulatory matters.
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