Expansion works at the Panama Canal are carried out by the main contractor, the Panama Canal Authority (PCA), who in turn has hired subcontractors such as Grupo Unidos por el Canal (GUPC), FCC Construcción and the construction company MECO.

After its approval, and once the construction works began, the Ministry of Work and Labor Development (MITRADEL –in Spanish-) approved regulations that directly govern labor as well as immigration issues on all expansion related works, namely:

1. Executive Decree 105 of May 13, 2008 regulating the temporary resident subcategories for foreigners hired as contractors, subcontractors or employees of the companies hired by the Panama Canal Authority.

1. Resolution 158 of September 2, 2009 which creates within the organic structure of the Ministry of Work and Labor Development the Special Regional Directorate of Work and Labor Development for the Panama Canal expansion.

Although chronologically speaking, it would have made more sense to issue Resolution 158 which created the Regional Directorate first, this was not the case. We will however examine this regulation first to understand the faculties granted therein and those that directly affect the process to hire for the expansion works.

Article two of the above said Resolution establishes the duties of the Regional Directorate, stating that it shall, inter alia,

a)      Record work contracts for all employees providing services to PCA contractors involved in the Panama Canal expansion works and their subcontractors.

b)      Process work permits in coordination with the National Immigration Service for workers at the Panama Canal expansion.

Point A covers permits for nationals as well as foreigners, which in case of the first no work permits are required, while for the second they do apply, and this are linked to point B.

Work Permits

Executive Decree no. 17 of 1999 regulates articles 17 and 18 of the Labor Code, which detail in article one the different work permits that MITRADEL may grant to foreign workers. Some are very specific but there is no specific one for expansion workers thus, in its stead, applies those established in points 3, 4 and 14:

1. Foreign worker within the ten percent of the regular staff.
2. Foreign expert or technician within the fifteen percent of specialized staff.

14. Foreign worker with permanent residence abroad as Foreign Professional.

Work permit application for foreigner within the 10% of regular staff

1. Power of attorney and application through lawyer, in simple paper; original and copy.
2. Work contract to be entered into with the employee in accordance with the provisions of article 68 of Cabinet Decree 252 of 1971.
3. Authenticated true copy of commercial license or operating permit of the hiring company, except in case of activities that do not require them.
4. Public Registry Certificate showing the legal standing of the company.
5. Clear copy of the last payroll to Caja de Seguro Social, together with original for comparison.
6. Clear copy of worker’s Immigration Card and clear copy of ID, if he has one, authenticated by the National Identity Document Directorate.
7. Clear copy of passport showing the particulars of worker.
8. Certification by the National Immigration and Naturalization Directorate showing worker’s immigration status.
9. Four wallet size pictures with worker’s name written on the back.

Work permit application for foreign expert or technician within 15% of specialized staff

1. Power of attorney and application through a lawyer, in simple paper; original and copy.
2. Work contract to be entered into with the employee in accordance with the provisions of article 68 of Cabinet Decree 252 of 1971.
3. Original note signed by representative of hiring company stating the name, ID number of worker that will substitute the foreign expert or technician with a commitment to train him for the performance of the relevant field;
4. Authenticated True copy of commercial license or operating permit of the hiring company, except in case of activities that do not require them.
5. Public Registry Certificate showing the legal standing of the company.
6. Clear copy of the last payroll to Caja de Seguro Social, together with original for comparison.
7. Clear copy of worker’s Immigration Card and clear copy of ID, if he had one, authenticated by the National Identity Document Directorate.
8. Clear copy of passport showing the particulars of worker.
9. Certification of worker’s immigration status by the National Immigration and Naturalization Directorate.
10. Professional qualification of worker if expert, through work reference letters evidencing his expertise. If a foreign company operating in Panama brings an expert from abroad to work for it, the letter shall be specific as to the duration of the services and the expertise. Letters ought to be authenticated in the country of origin at the Consulate of Panama and failing that, at the consulate of a friendly nation.
11. Professional license if technical worker, authenticated at Consulate of Panama in the country of origin or failing that, at the consulate of a friendly nation. It must include certifications validated by the Professional Technical Council or a specialized entity in Panama.
12. Four wallet size pictures with worker’s name written on the back.

Work permit application for foreigner with Permanent Residence as foreign professional

1. Power of attorney and application through a lawyer, in simple paper; original and copy.
2. Certification of worker’s immigration status by the National Immigration and Naturalization Directorate.
3. Copy authenticated by Notary Public of Permanent Residence Permit card issued by the National Immigration Service in favor of applicant.
4. Copy of university undergraduate, master or doctorate title or diploma, duly apostilled or authenticated.
5. Four wallet size pictures with worker’s name written on the back.

Upon presentation of the pertinent documentation, the Labor Immigration Department of this Regional Directorate will follow the work permit procedure below:

a)      It receives the application with documents attached by applicant, in fulfillment of requirements for the type of work permit required. The documentation evidencing the worker’s experience in the kind of job he is to perform must be authenticated. When documents showing the applicant’s expertise are at his country of origin, a term no greater than 2 months will be granted to file them as established in the Law for documents from abroad. In the event one or more documents are issued in a language other than Spanish, the relevant translations shall be made by an authorized public translator in accordance with Panamanian law.

b)      It sends a note to the PCA requesting certification that applicant has been hired to work with a contractor or subcontractor involved in the Canal expansion project.

c)      Upon receipt of PCA’s certification, it issues a Resolution authorizing, denying or extending, as the case may be, the application, which must be signed by the Regional Directorate and Head of Labor Immigration of the Regional Directorate.

d)      It sends copy of the resolution issued to the National Immigration Service Office for the Panama Canal expansion to issue the corresponding visa.

e)      It notifies applicant and provides the pertinent card.

f)       In case of PCA contractors or subcontractors involved in expansion works who, after fulfillment of the requirements in the points above, need to exceed the percentages in article 17 of the Code of Labor, they shall apply to the PCA to request from MITRADEL the respective approval to an exception on the percentages.

After obtaining the pertinent work permit, the following step is to obtain a Temporary Residence Permit, to which end, applicant shall comply with the provisions in article 28 of Decree Law 3 of 2008 first, on common requirements, namely:

1. Passport copy compared by Panamanian notary public, or certification by the official diplomatic representation in the country, or the authority at the place of issuance (a certificate of authenticity may be required of the passport if deemed necessary).
2. Health certificate from qualified professional dated within 3 months prior to the application.
3. Payment of $250 application fee, and $800 repatriation deposit, as applicable. This does not apply to members of a religious order, students, spouses of Panamanians, and minors under the age of 2 years.
4. Sworn statement of personal background.

In addition to the above, the following special requirements set out in articles 6 and 8 of Executive Decree 105 of 2009 must be fulfilled for three types of Temporary Residence Permits:

• As PCA contractor
• As Employee of Company under contract with the PCA
• As Employee of Subcontractor of Company under contract with the PCA

If the intention is to become a contractor under the expansion program, the requirements are:

1. Power of attorney and application
2. Three pictures
3. Copy of purchase order or contract entered into between the contractor and the PCA
4. A PCA certification that the person is a contractor of the entity as well as the duration and particulars of the agreement

If the intention is to join the expansion program as employee of contractor, the requirements are:

1. Power of attorney and application
2. Three pictures
3. A certification by PCA stating the existence of the agreement between the contractor and foreigner providing services to such company
4. Letter of responsibility from hiring company showing the position of applicant, salary to be paid, and that it will work exclusively in the execution of the contract awarded by the PCA to the hiring company.
5. Work permit

If the intention is to join the expansion program as employee of a subcontractor of a company under contract, the requirements are:

1. Power of attorney
2. Three pictures
3. Contractor’s certification stating the existence of a contractual relation with the subcontractor hiring the applicant, as well as the details of the relevant agreement.
4. Letter of responsibility from subcontractor stating position of applicant, salary to be paid, and that he will work exclusively in the works subcontracted from the hiring company in the agreement awarded by the PCA.
5. A certification by the PCA regarding the existence of the subcontract and that the foreigner will be providing services to that company.
6. Work permit.

All these permits may be extended while the agreement remains in force for up to 6 years. Exceptionally, they may be extended for more than 6 years if the PCA’s need of them is proven.

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This is a production and edition of the “Eduardo Morgan Jr.” Research & Consulting Center. The content of this publication does not, in any form, represent a formal opinion from MORGAN & MORGAN. For additional information, comments or questions, please contact us at: [email protected]

[/note]Los trabajos de ampliación del Canal de Panamá los lleva a cabo el contratista principal que es la Autoridad del Canal de Panamá (ACP), que a su vez cuenta con empresas subcontratistas tales como Grupo Unidos Por el Canal (GUPC), FCC Construcción y la constructora MECO.

Luego de haber sido aprobada e iniciada la construcción de esta obra, en materia de derecho se han aprobado dos normas de parte del Ministerio de Trabajo y Desarrollo Laboral (MITRADEL) que regulan directamente tanto el tema laboral como migratorio de todo lo relacionado con la ampliación, y son las siguientes:

1. Decreto Ejecutivo 105 de 13 de mayo de 2009 que reglamenta subcategorías de residente temporal para los extranjeros en calidad de contratistas o subcontratistas o empleados de empresas bajo contrato con la Autoridad del Canal de Panamá.

1. Resolución 158 de 2 de septiembre de 2009 que crea dentro de la estructura orgánica del Ministerio de Trabajo y Desarrollo Laboral la Dirección Regional Especial de Trabajo y Desarrollo Laboral para la ampliación del Canal de Panamá.

Aunque en orden cronológico habría tenido mayor sentido expedir primero la Resolución 158 que creó la Dirección Regional, ello no fue así, sin embargo vamos a examinar ésta norma primero para comprender de las facultades que en ella se otorgan y cuáles inciden directamente en los procedimientos para contratación en la ampliación.

El artículo segundo de dicha Resolución establece las funciones de esta Dirección Regional e indica que tendrá, entre otras, las siguientes:

a)   Registro de contratos de trabajo de los trabajadores que presten sus servicios a los contratistas de la ACP que participen en las obras de ampliación del Canal de Panamá y a sus subcontratistas.

b)   Tramitación de permisos de trabajo en coordinación con Servicio Nacional de Migración de los trabajadores de la ampliación del Canal de Panamá.

La función A abarca conjuntamente los permisos de nacionales así como de extranjeros que allí  se contraten, que en caso de los primeros no necesitan permisos de trabajo, mientras que los segundos sí y que van ligados a la función B.

Permiso laboral

El Decreto Ejecutivo 17 de 1999, que reglamenta los artículos 17 y 18 del Código de Trabajo, establece en su artículo primero los diferentes permisos de trabajo que el MITRADEL podrá otorgar a trabajadores extranjeros. Algunos son bastante específicos y para el caso que nos ocupa aún no hay uno especial para trabajadores de la ampliación, por lo que se pueden utilizar en su defecto los enunciados en los numerales 3, 4 y 14:

3. Trabajador extranjero dentro del diez por ciento del personal ordinario.

4. Trabajador extranjero experto o técnico dentro del quince por ciento del personal especializado.

14. Trabajador extranjero con Residencia Permanente en calidad de Extranjero Profesional.

Solicitud de permiso de trabajo para extranjero dentro del 10% del personal ordinario:

1. Poder y solicitud mediante abogado, en papel simple con original y copia.
2. Contrato de trabajo a celebrar con el trabajador conforme lo indica el artículo 68 del Decreto de Gabinete 252 de 1971.
3. Fotocopia autenticada de la licencia comercial o aviso de operación de la empresa empleadora, excepto si se trata actividades que no los requieran.
4. Certificado del Registro Público en que conste la persona jurídica de la sociedad.
5. Fotocopia legible de la última planilla de la Caja de Seguro Social, con el original para ser cotejada.
6. Fotocopia legible del carnet de Migración y fotocopia legible de la cédula de identidad personal del trabajador si la portara, autenticada por la Dirección Nacional de Cedulación.
7. Fotocopia legible del pasaporte en la parte donde consten los datos generales del trabajador.
8. Certificado expedido por la Dirección Nacional de Migración y Naturalización, donde conste el status migratorio del trabajador.
9. Cuatro fotos tamaño carnet con el nombre del trabajador escrito al dorso.

Solicitud de permiso de trabajo para extranjero experto o técnico dentro del 15% del personal especializado:

1. Poder y solicitud mediante abogado, en papel simple con original y copia.
2. Contrato de trabajo a celebrar con el trabajador conforme lo indica el artículo 68 del Decreto de Gabinete 252 de 1971.
3. Nota original suscrita por la representación de la empresa empleadora que contenga el nombre y cédula del trabajador que sustituirá al experto o técnico extranjero, con el compromiso de capacitarlo para el desempeño de la respectiva especialidad;
4. Fotocopia autenticada de la licencia comercial o aviso de operación de la empresa empleadora, excepto si se trata actividades que no los requieran.
5. Certificado del Registro Público en que conste la persona jurídica de la sociedad.
6. Fotocopia legible de la última planilla de la Caja de Seguro Social, con el original para ser cotejada.
7. Fotocopia legible del carnet de Migración y fotocopia legible de la cédula de identidad personal del trabajador si la portara, autenticada por la Dirección Nacional de Cedulación.
8. Fotocopia legible del pasaporte en la parte donde consten los datos generales del trabajador.
9. Certificado expedido por la Dirección Nacional de Migración y Naturalización, donde conste el status migratorio del trabajador.
10. Idoneidad profesional del trabajador si es experto, mediante cartas de referencia de trabajo anteriores en que conste la especialidad del mismo. Si se trata de empresa extranjera que opera en Panamá y trae un experto que trabaje con ella en el exterior, la carta debe especificar el tiempo de servicio y la especialidad. Las cartas deben ser autenticadas por el Cónsul de Panamá en ese país y en su defecto por el de un Estado amigo.
11. Idoneidad profesional del trabajador si es técnico, autenticada por el Cónsul de Panamá en ese país y en su defecto por el de un Estado amigo y adjuntar certificaciones refrendadas por el Consejo Técnico Profesional o una entidad especializada de Panamá;
12. Cuatro fotos tamaño carnet con el nombre del trabajador escrito al dorso.

Solicitud de permiso de trabajo para extranjero con Residencia Permanente en calidad de Extranjero Profesional:

1. Poder y solicitud mediante abogado, en papel simple con original y copia.
2. Certificado del Servicio Nacional de Migración en que conste el estatus migratorio del solicitante.
3. Copia autenticada ante Notario Público, del carnet emitido por el Servicio Nacional de Migración, donde conste el Permiso de Residente Permanente a favor del solicitante.
4. Copia del diploma o título universitario, licenciatura, maestría o doctorado, debidamente apostillado o autenticado.
5. 4 fotos tamaño carnet con el nombre del solicitante escrito al dorso.

Una vez aportados los requisitos que correspondan, el Departamento de Migración Laboral de esta Dirección Regional, seguirá el siguiente procedimiento con respecto a los permisos de trabajo:

a)   Recibir la solicitud con los documentos que el peticionario acompañe, cumpliendo los requisitos exigidos para el tipo de permiso de trabajo requerido. La documentación que acredite la experiencia del trabajador en el tipo de trabajo a desempeñar debe estar debidamente autenticada. Cuando los documentos que acrediten la experticia del solicitante se encuentren en su país de origen, se le concederá término no mayor de 2 meses para que sean presentados en la forma que establece la Ley para documentos provenientes del extranjero. En el evento de que uno o más documentos sean expedidos en otro idioma que no sea el español, las traducciones respectivas serán hechas por un traductor público autorizado conforme a la ley panameña.

b)   Enviar nota a la ACP para solicitar que certifique si el solicitante ha sido contratado para laborar con un contratista o subcontratista que participa en el proyecto de ampliación del canal.

c)    Recibida la certificación de la ACP, emitir Resolución que dispone la autorización, denegación o prórroga, según sea el caso, respecto a la solicitud que deberá ser firmada por el Director Regional y el Jefe de Migración Laboral de la Dirección Regional.

d)   Remitir copia de la resolución expedida a la Oficina del Servicio Nacional de Migración para la Ampliación del Canal de Panamá para que emita la Visa correspondiente.

e)   Notificar al solicitante y entregar el carnet respectivo.

f)     En caso que las empresas contratistas o subcontratista de la ACP que participen en las obras de ampliación, luego de cumplidos los requisitos de los literales anteriores, requieran superar los porcentajes establecidos en el artículo 17 del Código de Trabajo, deberán solicitar a la ACP que peticione la excepción de porcentajes ante el MITRADEL para la aprobación respectiva.

Luego de obtenido el respectivo permiso de trabajo como siguiente paso se hace necesario obtener el Permiso de Residencia Temporal, para el que se debe cumplir lo establecido en el artículo 28 del Decreto-Ley 3 de 2008 primeramente sobre los requisitos comunes, que son:

1. Copia del pasaporte cotejada por notario público panameño o con certificación de representación diplomática acreditada en el país o de la autoridad del lugar de emisión. (Podrá exigirse certificación de autenticidad del pasaporte de ser considerado necesario)
2. Certificado de salud por profesional idóneo dentro de los 3 meses anteriores a la solicitud.
3. Pago de B/.250.00 por derechos de la solicitud y B/.800.00 por depósito de repatriación, cuando aplique. No aplica para: religiosos, estudiantes, casados con panameños y menores de 12 años de edad.
4. Declaración jurada de antecedentes personales.

Adicional a lo anterior deben aportarse los siguientes requisitos especiales establecidos en los artículos 6 y 8 del Decreto Ejecutivo 105 de 2009 para tres tipos de Permiso de Residente Temporal que son:

–       en Calidad de Contratista de la ACP

–       en Calidad de Empleado de Empresa bajo contrato con la ACP

–       en Calidad de Empleado de Subcontratista de Empresa bajo contrato con la ACP

Si se pretende entrar a trabajar a programa de ampliación como contratista los requisitos para el permiso son:

1. Poder y solicitud.
2. Tres fotografías.
3. Copia de la orden de compra o contrato celebrado entre el contratista y la ACP.
4. Certificación de la ACP en que conste que la persona es contratista de esta entidad, así como la duración y generales del contrato.

Si se pretende entrar a trabajar a programa de ampliación como empleado de empresa contratista los requisitos para el permiso son:

1. Poder y solicitud.
2. Tres fotografías.
3. Certificación de la ACP que acredite la existencia de contrato con la empresa contratista y que el extranjero está prestando su servicio a dicha empresa.
4. Carta de responsabilidad de la empresa empleadora en que conste la posición que ocupa el solicitante, salario a devengar y que laborará exclusivamente para ejecutar el contrato adjudicado por la ACP a la empresa empleadora.
5. Permiso de trabajo.

Si se pretende entrar a trabajar a programa de ampliación como empleado de subcontratista de empresa bajo contrato los requisitos para el permiso son:

1. Poder y solicitud.
2. Tres fotografías.
3. Certificación de la empresa contratista en que conste la existencia de la relación contractual con la empresa subcontratista que ha empleado al solicitante, así como los datos del contrato respectivo.
4. Carta de responsabilidad de la empresa subcontratista en que conste la posición que ocupa el solicitante, salario a devengar y que laborará exclusivamente para ejecutar la porción subcontratada a su empresa empleadora del contrato adjudicado por la ACP.
5. Certificación emitida por la ACP que acredite la existencia de la subcontratación y que el extranjero estará prestando su servicio a dicha empresa.
6. Permiso de trabajo.

Todos estos permisos son prorrogables mientras contrato esté vigente y hasta por 6 años como máximo. De manera excepcional puede prorrogarse por más de los 6 años si se compruebe que es necesario para la ACP.

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Esto es una producción y edición del Centro de Investigación y Consultas – “Eduardo Morgan Jr.” El contenido de esta publicación no significa que, en cualquier forma, representan una opinión formal de Morgan & Morgan. Para obtener más información, comentarios o preguntas, póngase en contacto con nosotros en: [email protected]

[/note]

The Maritime Labor Convention of 2006 is an instrument that contains an approximate of 70 different provisions on labor-related matters in the maritime industry, which was approved by the International Labor Organization (ILO), in view of the absence of minimum standards that offered labor security and decent living conditions to the seafarers.

The Maritime Labor Convention is expected to take effect before the end of 2013.   To come into full force and effect, it is necessary that (i) it be ratified by at least 30 ILO members, and (ii) that the ratifying members represent 33% of world tonnage.  This second condition was already achieved upon ratification by Panama, which was the fourth country to ratify the Convention. Currently, 24 members of the ILO have ratified it.

Once the Convention comes into effect, it is considered to become the fourth pillar of the international laws of the maritime industry, which consist of: the International Convention for the Safety of Life at Sea (SOLAS), the International Convention for the Prevention of Pollution from Ships (MARPOL) and the International Convention on Standards of Training, Certification and Watchkeeping for seafarers (STCW).

According to ILO data, there are more than 1.2 million seafarers in the world and the Convention seeks to regulate their working environment in a unified manner by establishing modern standards and decent working conditions, which apply to all seafarers alike.  In this manner, equitable rules of global application are established which benefits not only the workers, but governments and shipowners, by standardizing the rules on maritime labor. Additionally, the Convention establishes a clause of no more favorable treatment, which means that the provisions of the Convention shall apply to all ships irrespective of whether their flag has ratified the Convention.

The Convention was drawn up after a long process involving government representatives, shipowners and seafarers, who all agreed to the minimum requirements for the development of the work of seafarers, regardless of the flag of the vessel. The Convention regulates matters concerning the hours of rest, resting place, medical care, food, minimum age, among others. It was developed in two main parts, the first of binding compliance and the second of recommendations.

Another innovation of the Convention is that the seafarers’ definition includes any person who works or is employed aboard a ship, in any office or position. This means that the Convention does not limit its application to the officers in charge of navigation of the ship.

With the entry into force of the Convention, our country faces several challenges such as completion of the training of our inspectors in order to fulfill the monitoring responsibility, contained in the Convention, of the ships part of our merchant marine, and the significant work of our authorities to achieve the unification of our internal rules, so as to achieve consistency with the Convention and to consolidate our position as a leader in the maritime industry.

El Convenio sobre el trabajo marítimo de 2006 es un instrumento que refunda un aproximado de 70 normas diferentes sobre materia laboral en la industria marítima y el cual fue aprobado por la Organización Internacional de Trabajo (OIT) en vista de la ausencia de estándares mínimos que brindaran seguridad laboral y condiciones de vida decentes de la gente de mar.

Se estima que el Convenio sobre el trabajo marítimo entre a regir antes de que finalice el año 2013 ya que para que el mismo entre en vigencia es necesario que (i) sea ratificado por al menos 30 miembros de la Organización Internacional de Trabajo (OIT), y (ii) los miembros que lo ratifiquen representen el 33% del tonelaje bruto mundial.  Esta segunda condición fue ya alcanzada al ser ratificado por la República de Panamá, la cual fue el cuarto país en ratificar el Convenio. En la actualidad, 24 miembros de la OIT ya lo han ratificado.

Una vez el Convenio entre a regir, se considera que el mismo será el cuarto pilar de las normas internacionales de la industria marítima las cuales están integradas por: el Convenio internacional para la seguridad de la vida humana en el mar (SOLAS), el Convenio internacional para prevenir la contaminación por los buques (MARPOL), y el Convenio internacional sobre normas de formación, titulación y guardia para la gente de mar (STCW).

De acuerdo a los datos de la Organización Internacional de Trabajo (OIT), en el mundo existen más de 1.2 millones de trabajadores del mar y con el Convenio se busca reglamentar de manera unificada sus condiciones de trabajo estableciendo estándares modernos y de condiciones decentes de trabajo, que le apliquen a todos por igual. De esta manera se establecen reglas equitativas de aplicación global lo cual beneficia no solo a los trabajadores, sino a los gobiernos y a los armadores al estandarizar las reglas en materia laboral marítima. Adicionalmente, el Convenio establece una cláusula de trato no más favorable,  lo que significa que las reglas establecidas en el Convenio se aplicarán a todos los buques independientemente de que sus respectivas bandera haya o no ratificado el Convenio.

El Convenio fue elaborado luego de un largo proceso que involucró a los representantes de los gobiernos, los armadores y los marinos; los cuales acordaron las exigencias mínimas para el desarrollo del trabajo de la gente de mar -independiente de la bandera del buque- el cual abarca lo relativo a las horas de descanso, lugar de descanso, atención médica, alimentación, edad mínima, entre otras. El Convenio fue desarrollado en dos partes principales, la primera de obligatorio cumplimiento y la segunda de recomendaciones,  las cuales no son de obligatorio cumplimiento.

Otro punto de innovación del Convenio, es que dentro de la definición de gente de mar se incluye a cualquier persona que trabaje o se encuentre empleada, en cualquier capacidad, a bordo de un buque. Es decir, que el Convenio no limita su aplicación a los marinos encargados de la navegación del buque.

Nuestro país, frente a la entrada en vigencia del Convenio, enfrenta varios retos como la culminación del entrenamiento de nuestros inspectores a efectos de cumplir con la responsabilidad de fiscalización -contenida en el Convenio- de las naves que integran nuestra flota y el trascendental trabajo de nuestras autoridades para lograr la unificación de las normas internas para que estén acordes al Convenio y así consolidar nuestra posición como líder en la industria marítima.

Back in 1999, a law was adopted renovating an autonomous regulator and putting in place a modern regime to govern securities and capital markets in Panama, placing the local regulatory environment very much in line with legislation in force in more developed markets such as the United States (including, for example, the creation of the indirect holding system).  Last September significant amendments to the 1999 securities law were adopted, which materially change the internal governance structure of the regulator and introduced major changes in various specific areas.

The main driver of the amendments to the internal regime of the regulator was to permit more expeditious action with respect to its day-to-day supervision and oversight of the industry and the market.  In addition to changing its name – previously “Comisión Nacional de Valores” and now “Superintendencia del Mercado de Valores”, the new law replaced the three-commissioner structure with a board of directors and a Superintendent, each with its own authority.  Five of the seven-members of the board of directors are appointed by the Executive Branch and must meet certain criteria regarding education and experience; the other two are designated by the boards of directors of each of the Superintendence of Banks and the Superintendence of Insurance and Reinsurance.   The Securities Superintendent is also appointed by the Executive Branch and is responsible for the day-to-day operations of the regulatory entity. Also a special council was created (“Consejo de CoordinaciónFinanciera”) to coordinate actions amongst all financial regulators (securities, banks, insurance, coops,pension funds and finance companies) with the participation without vote of the anti-money laundering bureau of Panama and the Accounting Board.

In addition to modifying the fees that the Superintendence can collect from regulated entities and activities, in connection with, for example, the grant of brokerage licenses and registration of securities offerings, the amendment introduced certain substantive changes in licensing and registration.  For example, it is now clear that investment activities in foreign exchange (forex) for clients is a regulated activity in Panama that requires a brokerage license; persons currently undertaking such activities have six months to obtain the license or cease operations.  Also, only rating agencies registered with the Superintendence can operate as such locally.

A new activity for which registration is required is that of regularly offering the valuation of securities.  A license is also required to provide administrative services to entities regulated by the Superintendence, such as accounting, secretarial, intermediary with shareholders (including paying agents) and any other services unrelated to investment decisions.

A major revamp of the provisions regarding violations of the securities law and the consequences thereof, including the procedure to be followed by the Superintendence and some of the penalties that may be imposed, has also been introduced by the amendment. Finally, a number of sensitive limitations and restrictions applicable to pension funds were modified.

Juridical persons organized under the laws of Panama or operating locally that are using in its name terms such as “mutual fund”, “pension fund”, “brokerage house”, “broker dealer”, “investment advisor”, “investment fund manager”, “fund administrator”, “credit rating agency”, “price appraiser”, “liquidity provider”, “stock exchange”, “clearing house”, “registered issuer”, “forex” or “FX trading” (in any language),are given 180 days to obtain the applicable license or make the corresponding registration as required under the amended securities law, change its name or proceed with its voluntary dissolution and liquidation.  Otherwise, upon the expiry of such period the Superintendence shall instruct the Public Registry Office of Panama to make an annotation in the registry dissolving any juridical person using any of the foregoing terms without the corresponding license or registration.

All in all, this latest amendment to the securities law of Panama has brought about significant internal changes in the Superintendence of the Securities Market of Panama and all in the industry should look into the amendment to identify any changes applicable thereto.

Back in 1999, a law was adopted renovating an autonomous regulator and putting in place a modern regime to govern securities and capital markets in Panama, placing the local regulatory environment very much in line with legislation in force in more developed markets such as the United States (including, for example, the creation of the indirect holding system).  Last September significant amendments to the 1999 securities law were adopted, which materially change the internal governance structure of the regulator and introduced major changes in various specific areas.

The main driver of the amendments to the internal regime of the regulator was to permit more expeditious action with respect to its day-to-day supervision and oversight of the industry and the market.  In addition to changing its name – previously “Comisión Nacional de Valores” and now “Superintendencia del Mercado de Valores”, the new law replaced the three-commissioner structure with a board of directors and a Superintendent, each with its own authority.  Five of the seven-members of the board of directors are appointed by the Executive Branch and must meet certain criteria regarding education and experience; the other two are designated by the boards of directors of each of the Superintendence of Banks and the Superintendence of Insurance and Reinsurance.   The Securities Superintendent is also appointed by the Executive Branch and is responsible for the day-to-day operations of the regulatory entity. Also a special council was created (“Consejo de CoordinaciónFinanciera”) to coordinate actions amongst all financial regulators (securities, banks, insurance, coops,pension funds and finance companies) with the participation without vote of the anti-money laundering bureau of Panama and the Accounting Board.

In addition to modifying the fees that the Superintendence can collect from regulated entities and activities, in connection with, for example, the grant of brokerage licenses and registration of securities offerings, the amendment introduced certain substantive changes in licensing and registration.  For example, it is now clear that investment activities in foreign exchange (forex) for clients is a regulated activity in Panama that requires a brokerage license; persons currently undertaking such activities have six months to obtain the license or cease operations.  Also, only rating agencies registered with the Superintendence can operate as such locally.

A new activity for which registration is required is that of regularly offering the valuation of securities.  A license is also required to provide administrative services to entities regulated by the Superintendence, such as accounting, secretarial, intermediary with shareholders (including paying agents) and any other services unrelated to investment decisions.

A major revamp of the provisions regarding violations of the securities law and the consequences thereof, including the procedure to be followed by the Superintendence and some of the penalties that may be imposed, has also been introduced by the amendment. Finally, a number of sensitive limitations and restrictions applicable to pension funds were modified.

Juridical persons organized under the laws of Panama or operating locally that are using in its name terms such as “mutual fund”, “pension fund”, “brokerage house”, “broker dealer”, “investment advisor”, “investment fund manager”, “fund administrator”, “credit rating agency”, “price appraiser”, “liquidity provider”, “stock exchange”, “clearing house”, “registered issuer”, “forex” or “FX trading” (in any language),are given 180 days to obtain the applicable license or make the corresponding registration as required under the amended securities law, change its name or proceed with its voluntary dissolution and liquidation.  Otherwise, upon the expiry of such period the Superintendence shall instruct the Public Registry Office of Panama to make an annotation in the registry dissolving any juridical person using any of the foregoing terms without the corresponding license or registration.

All in all, this latest amendment to the securities law of Panama has brought about significant internal changes in the Superintendence of the Securities Market of Panama and all in the industry should look into the amendment to identify any changes applicable thereto.