The Role of Regulated Compliance Companies in the Non-Financial Regulated Sector

There are more than 35 compliance companies duly registered and regulated by the Panamanian Superintendence of Non-Financial Regulated Subjects. To help eradicate from our country the crimes of corruption, tax evasion and money laundering, to improve our international image as a financial center and to get out of the grey listings of the EU and OECD, among other reasons, a new industry has been formed, generating qualified and highly specialized jobs: the regulated compliance companies.

Panama is one of the few countries in the world that strictly regulate these types of companies that play a vital role in avoiding the aforementioned crimes and help create a culture of compliance.

Panama wisely decided that those who train and help companies in the non-financial sector to follow the rules of due diligence, know your customer and promote the culture of compliance, had to be companies with certain characteristics, specialized capabilities and that met a number of strict requirements demanded by law.

There is no doubt that foreign companies seeking to invest in Panama appreciate the development of this industry in the national economy and require, often, that their local counterpart has manuals and policies on compliance, money laundering and corruption prevention, among others.

The threat of money laundering in our economy will not disappear once we get off the international lists of the different agencies that label Panama as deficient around supervision of money laundering non-financial companies.

We must not forget past and recent scandals and the use of real estate to launder the proceeds of the sale and transfer of drugs and other crimes. It is a rare occasion when a police operation does not confiscate luxurious residences and expensive automobiles from these criminals.  Some company or private individual sold those assets. Had that company complied with due diligence process?

The Panamanian Association of Compliance Companies (APEC) is in discussions with the Superintendence of Non-Financial Regulated Subjects and various associations and institutes to give, free of charge, seminars to create awareness among businessmen of the need to spread the culture of compliance in our business sector.

Author:
Alvaro Tomas
[email protected]
Partner of Morgan & Morgan and president of the Panamanian Association of Compliance Companies (APEC).