Panama AML Obligations for Accountants: Law 23 of 2015, the UAF and the Superintendencia

In Panama, certified public accountants (contadores públicos autorizados) are covered by Law 23 of 2015 on the prevention of money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction, when they carry out certain activities for clients. The financial intelligence unit is the Unidad de Análisis Financiero (UAF), and the Superintendencia de Sujetos No Financieros supervises non-financial obliged subjects. This guide draws on the consolidated text of Law 23 published on the National Commission against Money Laundering site, which carries the note "updated 18/11/2020", and on a PwC summary of a later executive decree. It is open about what we could not confirm. It is general information, not legal advice, and our reading of the Spanish-language text is ours.

When accountants are covered

Article 40, number 11, of the text we read covers lawyers and certified public accountants only when, in the course of their professional activity, they perform listed activities for or on behalf of a client, such as buying or selling real estate, managing client funds, or creating legal persons. A practice that provides only bookkeeping or audit services may therefore need to check which of its services fall within the list. The text names the Superintendencia de Sujetos No Financieros as the supervising authority for non-financial obliged subjects, with the sanctioning powers described below.

Compliance officer or liaison

Article 12 requires obliged subjects to designate a person or unit responsible for acting as the liaison with the UAF and with their supervisor. Until one is formally appointed, the legal representative, or the professional in the case of an individual practitioner, performs that role. Article 35 allows outside compliance firms to assist with due diligence, but the obliged subject remains responsible for the work.

Due diligence and beneficial ownership

Articles 26 to 28 require non-financial obliged subjects to assess risk, verify client identity and identify beneficial owners. For individuals, the basic measures are limited to the items in article 27 that the text lists, and for legal persons the duties are limited to specified items of article 28, depending on relative importance and identified risk. A PwC bulletin of November 2022 on Executive Decree 35 of 6 September 2022, which regulates Law 23 and replaced an earlier decree of 2015, says the beneficial ownership threshold is 10% or more of ownership or voting rights for financial entities and 25% or more for non-financial entities, with exemptions such as listed companies. The same bulletin says non-financial entities must collect client documents such as proof of income, bank statements, tax returns, financial statements, contracts and invoices, and must define financial and transactional profiles. It is a summary, not the decree text, so confirm these points against the official gazette. For the general method, see our guides to KYC and customer due diligence in accountancy practices and ultimate beneficial ownership.

Reporting and tipping off

Article 54 requires suspicious operations, including attempted ones, to be reported directly to the UAF regardless of amount, and says reports must be sent immediately after detection. Article 53 separately covers cash and cash-equivalent transactions of B/. 10,000 or more. Article 56 bars telling a client or third parties that information was requested or that a suspicious-activity report was filed, and shields those who report in good faith, and their staff, from civil and criminal liability. Our guide to suspicious activity reports and tipping off is UK-focused but explains the practical sequence of spotting, escalating and reporting.

Record keeping

Article 29 requires records to be kept for at least five years counted from the end of the professional relationship. The PwC bulletin adds that responses to UAF requests are due within 15 business days, with an extension available on request with reasons, and that supervisors can access due diligence records.

Penalties

Under articles 60 to 62 of the text we read, violations without a specific sanction carry fines from B/. 5,000 to B/. 5,000,000, set by reference to severity, repeat offending, harm and the size of the subject, and continuing violations can attract progressive fines. Article 61 lets the Superintendencia of Non-Financial Subjects ask the Public Registry to suspend a company's corporate rights. The PwC bulletin adds that supervisors can apply disciplinary sanctions such as suspension, restriction or removal of licences or certificates, and that these do not replace civil or criminal liability.

What we could not confirm

• Whether Law 23 has been amended since the 18 November 2020 update date, beyond the 2022 executive decree and Law 124 of 2020 that the text references.
• The text of Executive Decree 35 of 2022, as we relied on a summary.
• Whether accountants must register with the Superintendencia and the deadlines and fees.
• Whether the Superintendencia has issued guidance specific to accountants. A due diligence guide on its site exists but we did not read it.

Suggested next steps

These are our suggestions, not requirements. Map your services against article 40, number 11. Name your liaison under article 12. Keep records for at least the five-year period in article 29. Check the Superintendencia's current guides and registration requirements. For team training, see our CPD courses.

Frequently asked questions

Are accountants in Panama covered by AML law?

Certified public accountants are covered by Law 23 of 2015 when they perform the listed activities for or on behalf of clients, such as buying or selling real estate, managing client funds or creating legal persons.

How quickly must a suspicion be reported?

Immediately after detection, directly to the UAF, under article 54.

How long must records be kept?

At least five years from the end of the professional relationship, under article 29.