PANAMA CITY, Jan 27 (PBI) – The Superintendency of Banks of Panama (SBP) has issued Agreement 1-2026, marking a comprehensive update to the nation’s regulatory framework for preventing the illicit use of banking and fiduciary services.

The new regulation, signed January 16, 2025, aims to bolster Panama’s defenses against money laundering, terrorist financing, and other financial crimes. By modernizing existing controls, the SBP seeks to align the International Banking Center (CBI) with evolving global compliance standards and international best practices.

Strengthening Due Diligence and Risk Mitigation

Agreement 1-2026 introduces more rigorous requirements for financial institutions, focusing on the detection and mitigation of operational and reputational risks. Key pillars of the new regulation include:

• Customer Due Diligence (CDD): Enhanced protocols for identifying and verifying client profiles.
• Enhanced Due Diligence (EDD): Stricter application of measures for high-risk categories and complex transactions.
• Transaction Monitoring: Advanced analysis requirements to improve the detection of suspicious activities.
• Internal Controls: Mandatory strengthening of institutional policies and risk management frameworks.

The SBP characterized the update as a proactive response to the shifting landscape of global financial risks, ensuring the stability and integrity of Panama’s banking jurisdiction.

Regulatory Consolidation and Repeals

In a move to streamline the legal landscape and provide greater regulatory certainty, Agreement 1-2026 explicitly repeals several legacy regulations. The agreements being replaced include 10-2015, 1-2013, 8-2000, and 10-2000. This consolidation effectively centralizes modern AML/CFT requirements into a single, cohesive framework for supervised entities.

Implementation Timeline

The SBP has established a phased transition period to allow banks and fiduciary firms to upgrade their systems, internal processes, and compliance controls:

• Article 25 (Paragraph 1): Full compliance is required no later than January 31, 2027.
• Article 14: Institutions have until June 30, 2027, to meet these specific requirements.

The regulator emphasized that these deadlines are intended to ensure a smooth transition without disrupting the operational flow of the banking center.

Resources:

• Official Document: Access the full text of Agreement 1-2026 here.
• Regulatory Analysis: For a simplified breakdown of these new requirements, download our free PBI Regulatory Summary Report.