PANAMA

On April 29, the Executive Branch, through the Minister of Commerce and Industries (MICI), presented a bill that seeks to modernize the Colon Free Zone (ZLC, in Spanish). This document was sent to the Commerce and Economic Affairs Committee. Additionally, the Minister of Economy and Finance (MEF), Héctor Alexander, presented another bill which aims to combat money laundering. In this case, the bill was sent to the Economy and Finance Committee. Since the Assembly concluded its ordinary sessions on April 30, until June 30, only those bills that are requested by the Executive Branch to be dealt with in extraordinary sessions will be debated.

The bill presented by the head of the MICI creates the Program for the Modernization of the Infrastructure of Logistics Services in the ZLC and introduces amendments to Law 8 of April 4, 2016. The text is part of President Laurentino Cortizo’s plan to match the benefits of the ZLC with those offered by the different special economic regimes within the country. 

Among its provisions are the increased powers of its Board of Directors and General Management; the granting of permits for logistic storage services, including on nationalized merchandise; a labor regime similar to that of the Panama Pacific Area and the option for Multinationals that are registered in the manufacturing services regime (EMMA, in Spanish) to establish themselves within the Colon Free Zone. Additionally, it states that users of the ZLC will be allowed to carry out electronic commerce activities with nationals or foreigners.

Regarding the bill to combat money laundering, it amends several existing regulations, including Law 52 of 2016, Law 23 of 2015 and the Tax Code. As a result, it includes more information requirements and obligations regarding the accounting records of certain legal entities, it increases the fines for those who do not comply with the law, it modifies the definition of “final beneficiaries” and it adds an article for financial and non-financial obliged subjects related to the due diligence that must conduct their operations, among other things.