In 1999, the Republic of Panama enacted the Law Decree No.1. The country entered into the new millennium with a strong, updated and modern legislation of securities. However, the changes on international markets forced the Republic of Panama to change its securities legislation once again.
In 2011, the Republic of Panama enacted Law 67 of 2011 by which the government of Panama creates the inter institutional coordination and cooperation system between all regulatory entities, the Superintendency of Securities and amended Law Decree No. 1 of 1999.
Law 67 implements a multiple institutional coordination and cooperation system between regulatory entities as a multilateral board that gathers Panamanian regulatory government agencies such as the Superintendent of Banking, the Superintendent of Insurance and reinsurance, the Superintendent of Securities, the Director of the Financing Companies, the Director of the Panamanian Cooperative Institute, the Director of the Savings of Public Employees of the Panamanian Government, the President of the Accountant Association and the Director of the Finance Analysis Unit to Combat Money Laundering and Terrorism. With Law 67 of 2011, all institutions became a single government agency in charge of coordinating activities that involve securities in Panama. The board also issues all government policies regarding securities in connection with other sensitive economic activities in the Republic of Panama.
Law 67 states all requirements regarding the Forex activity. A whole regulatory chapter regulating all matters regarding the market of currencies was introduced as well. The labor code was amended to allow the management of funds from employees and the retirement funds too. The law provides flexibility for corporations to manage labor and retirement funds.
Law 67 has introduced the class action for consumers affected by negligence or fraud cases in securities. The class action will be applied according with Law 45 of 2007 which protects the consumers in Panama. The law states a new administrative procedure for people or corporations that infringe the law. Fines were increased up to $1,000,000.00 to the infractors.
The Security Comission employees have more stability and benefits with Law 67. A merit and bonus scale system was stated in the Law in order to provide harmony and security to these highly technical public servers.
This Law also increased a new terminology in its glossary and updated the old one. More than 50 terms were reviewed, changed or introduced.
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