News

In a step widely seen as long overdue, the European Union formally voted this week to remove Panama from its list of “high-risk” financial jurisdictions.

The vote by the European Parliament to reinstate Panama clears the path for a wave of positive developments, including more foreign investment, a strengthened financial system, and improved financial relations with Europe.

“This is recognition of the serious work we are doing as a country,” said President  José Raúl Mulino in a social media post. “I appreciate and acknowledge the teamwork put into removing Panama from the European Union’s money laundering list. 

Panama Real Estate has been on and off the list several times over the years. It’s often hard to tell why countries are added or removed. Once you’re on the list, many legal and financial barriers must be cleared to get off it. Panama was removed from what is formally called the Financial Action Task Force (FATF) Grey List in October 2023, after complying with recommendations for greater financial transparency and rigorous measures to prevent international financial crimes.

This week’s European parliament vote — the UAE was also removed from the list — will have ramifications at every level of Panama’s financial community.

“This achievement not only strengthens Panama’s image in the international community, but also opens new doors for us to attract investment,” economist Eric Molino Ferrer told La Prensa.

According to the experts, the ruling will also aid the facilitation of financial and commercial transactions, improve investor confidence, boost the competitiveness of local industries, and strengthen foreign trade.