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Changes in the “Know Your Client” Policy Panama

Under recent changes in Panamanian law, Resident Agents are now required to obtain more comprehensive information on the final beneficial owners of Panamanian entities, such as corporations, private interest foundations or limited liability corporations.

As Resident Agents, we must be able to identify the final beneficial owner, including the identity and location of the holders of bearer shares. Among the required information we have: name, contact details, copy of identity documents, declaration on the activities of the corporation and commercial and banking references.

The information must be provided before incorporation, or within the following 30 working days, for all new entities, and must be updated when there is a change in beneficial ownership.

The law states that the information provided by the clients must be maintained in strict confidentiality. The Resident Agent may only disclose information to the competent authorities in compliance with the procedures and formalities required by law in cases related to drug trafficking, money laundering, information exchange agreements, and through the appropriate channels under international treaties.

Noncompliance from the Resident Agents may result in disciplinary sanctions and monetary penalties.

Exceptions to these requirements may apply when a client, being a supervised entity, acts on behalf of a third party and confirms compliance with due diligence measures and commits to provide information when required by the Resident Agent.

If you have any comments or questions, please do not hesitate to contact us at info@limayasociados.com.

«This newsletter is for information purposes only and should not be considered as a legal opinion from Lima y Asociados.»