Law No. 129 of 17th March 2020, published in Official Gazette No. 28985-C of the Republic of Panama, has created the Sole Private Registry System for Final Beneficiaries of legal entities organized and existing under Panamanian laws, in order to establish a framework of assistance to the competent authorities for the prevention of money laundering, financing terrorism and the proliferation of weapons of mass destruction, in respect of information about the final beneficiaries, which the resident agents of legal entities have obtained in keeping with existing legislation and international commitments of the government of the Republic of Panama.
The only Panamanian authorities to have access to such information are the Superintendence of Non-Financial Subjects, the Financial Analysis Unit for the Prevention of Money Laundering and Terrorism Financing, the Attorney General’s Office and the Ministry of Economy and Finance of the Republic of Panama, and only in specific cases determined by law. Under Panamanian legislation, the individual (or individuals) who directly or indirectly owns, controls, and/or exercises significant influence on the account relations, the contractual relations, and/or the business of the legal entity is to be considered as the Final Beneficiary. The individual in whose name or for whose benefit the legal entity enters into a transaction is also considered as Final Beneficiary, as well as the individual who has the final control of a legal entity.
The resident agent must give the Sole Registry System the information required in respect of each legal entity for whom it is serving, as well as the information about the respective final beneficiary. If the final beneficiary of the legal entity to be reported to the Sole Registry System is an enterprise with common shares of a company listed in a local or international stock exchange, or an entity owned by some state, or owned multilaterally, or by a foreign nation, the Law has established special requirements for such situations, according to the situation of the legal entity to be registered.
The registration of the data of the legal entity and the final beneficiary must be made by the resident agents within the term of thirty (30) business days following the date of constitution or recordation of the legal entity, or the recordation of a new resident agent in the Public Registry of Panama. The information provided by the resident agent shall remain in the Sole Registry System while the legal entity exists and for a period of five (5) years after its dissolution.
When the Superintendence of Non-Financial Subjects informs that the Sole Private Registry System for Final Beneficiaries is operating, which shall take place any time before the 17th of September, 2020, the resident agents must proceed to their own registration as subjects to be registered, together with the detailed information about each legal entity constituted or registered and existing which is being provided with the service of the resident agent, as well as the detailed information and about their respective final beneficiaries before the end of the term of six (6) months after the publication of said notice by the Superintendence of Non-Financial Subjects in nationwide coverage media.
Sincerely,
V. I. Services & Solutions Ltd.
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