EU Removes Panama from High-Risk List: A New Era for Business and Company Formation
- VISS
- Jun 18
- 2 min read
In a significant milestone for Panama’s international reputation and financial sector, the European Union has officially removed Panama from its list of high-risk countries for money laundering and terrorist financing. This long-anticipated decision reflects Panama's substantial progress in strengthening its regulatory framework and demonstrates the country's commitment to global financial compliance standards.
A Positive Turning Point for Panama
Panama’s removal from the EU’s high-risk list is more than symbolic—it has tangible effects for international investors, financial institutions, and entrepreneurs considering Panama as a hub for international business operations. The decision signals that the EU recognizes Panama's efforts to align its anti-money laundering (AML) and counter-terrorist financing (CTF) practices with international norms, particularly those set by the Financial Action Task Force (FATF).
This move also alleviates the enhanced due diligence requirements previously imposed on Panamanian entities and financial transactions within the EU. It restores a level of trust and ease in doing business with Panama-based structures, making the jurisdiction significantly more attractive to global investors and multinational companies.
Why Incorporate in Panama?
With the EU's endorsement, now is an ideal time to consider Panama for company formation. Here’s why:
1. Strategic Geographic Location
Panama’s unique position as a bridge between North and South America—and its control of the vital Panama Canal—makes it a logistical and commercial powerhouse. The country serves as a gateway for global trade and international business.
2. Business-Friendly Environment
Panama offers a robust legal system based on civil law, a pro-business regulatory framework, and competitive tax incentives. The Panamanian Private Interest Foundation and International Business Company (IBC) structures remain popular for asset protection, succession planning, and global investment strategies.
3. Confidentiality and Asset Protection
Panama upholds strong confidentiality laws and offers structures that allow for flexible ownership arrangements, nominee services, and protection of shareholder identity—all within a transparent and now globally compliant framework.
4. Tax Efficiency
Panama operates on a territorial tax system, meaning income earned outside of Panama is not subject to local taxation. This makes it an ideal jurisdiction for international operations and holding companies.
5. Modern Banking and Legal Infrastructure
With a well-developed banking sector, multilingual professionals, and modern financial services, Panama provides all the tools needed to support complex international business activities.
A Green Light for Growth
For professionals in wealth management, fintech, maritime, logistics, and international trade, Panama’s new status offers a golden opportunity to establish or expand operations in a trusted jurisdiction. This EU decision opens doors for easier cross-border transactions, improved investor confidence, and renewed momentum in Panama’s role as a regional business hub.
As Panama continues to enhance its legal and regulatory landscape, the country reaffirms its position as a dynamic and reliable destination for global entrepreneurs, corporations, and high-net-worth individuals.
Looking to Incorporate in Panama?
Our team provides end-to-end services for company formation, regulatory compliance, and corporate governance in Panama. Whether you're establishing a new venture or relocating an existing structure, we're here to help you navigate the process efficiently and securely.
Contact us today to explore the benefits of doing business in Panama.
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