Panama is on the FATF grey list for having deficiencies in stopping money laundering.
The Superintendency of Banks of Panama reported that the country plans to exit the list in 2022.
Panama has created an uncertain scenario in the bitcoin ecosystem after highlighting its attempt to leave the grey list of the International Financial Action Group, better known as FATF. In 2022 it will be three years since the country appears in this global list that registers the countries with deficiencies in the fight against money laundering.
Ana Raquel Velasco, the director of the SBP, revealed that due to a review that the FATF will do in January 2022, they hope to leave the grey list; something that raises concerns about the regulation of cryptocurrencies. The official stated that they have already managed to meet the parameters needed by the regulatory body, including on remittances.
According to Velasco, all the FATF highlights, particularly the exercise of illegal remittances that reside in the role of SBP, have already been qualified by the evaluator as long complied by Panama.
Velasco also notes that the country’s financial sector got already governed by frameworks that discourage money laundering and reflect a favorable outlook.
The director of the SBP explained that the challenge now is to apply the implementation and effectiveness of the frameworks approved in recent years to fight against money laundering. Panama entered the grey list back in 2019, and since then, it has remained there, although it had previously entered in 2014 and managed to leave in 2016.
The FATF commits the countries that it puts on its grey list to resolve identified strategic deficiencies as soon as possible while they are there. The countries in the grey list must also create advisories for entities to avoid trading. Its goal is to prevent illegal activities and damage to society by promoting the control of money laundering and the financing of terrorism.
Panama Continues in the Process to Regulate the Bitcoin Environment
The FATF evaluation would know if their laws to fight against money laundering are correct or if they will have to apply more control adjustments, which could have serious repercussions on the regulation of cryptocurrencies.
The FATF has set up strict parameters to regulate the bitcoin ecosystem recently. Two months ago, it revealed a guide with recommendations such as reducing peer-to-peer (P2P) transactions, viewing and controlling cryptocurrency operations, and censoring transfers to non-recommended accounts.
This guide got catalogued as a flawed method to regulate the sector by the research center in public policy with cryptocurrencies Coin Center. Different figures from the industry stated they sort many difficulties to comply with this guide. ATH21, a law firm on crypto assets, said that achieving an application would require an overwhelming effort for the countries.
The FATF decision, in January, could consolidate operations with bitcoin and other digital assets in Panama. Meanwhile, the analysis of the bills on cryptocurrencies in the nation is still ongoing, although it has not yet released its status.
By: Jenson Nuñez
