The Panamanian financial system will be evaluated

The Panamanian financial system will be evaluated

30/04/2016 source “Prensa Latina”

The Panamanian government created today a National and International Expert Independent Committee and to evaluate the practices of the financial system, an act that is part of the initiatives to reverse the country’s image after the controversy of “Panama Papers”.

The Panamanian president, Juan Carlos Varela, said the country should “continue to move forward towards transparency and strengthen our logistics and financial services platform, in order to avoid that it can be used for illegal activities or for purposes that doesn’t represent the common good”, and that the creation of this committee is part of this policy.

The President Varela says that the geographical position, the foreign investment and the service platform are conditions that contributed to the nation’s economic growth, but that growth “does not depend on irregular cash flows in our financial system, but on the hard work of Panamanians”, adding that the country” knew how to win an important place among all the nations”.

The main functions of the National and International Expert Independent Committee, which will be formed by national and foreign experts, will review the current legal framework, including policies, laws and international treaties, evaluate the effectiveness of recent reforms and identify the vulnerability of the platform of the international services, and to assist the institutions in their policies against international tax evasion and strengthen the country as a global financial center with the best practices of transparency.

The Committee will be headed by the American Joseph Stiglitz, Economics Nobel Prize, and includes Mark Pieth, professor of Criminal Law and Criminology at the University of Basel, in Switzerland, and the Costa Rican Roberto Artavia, former rector of INCAE Business School, Nicolás Ardito Barletta, former President of Panama, Gisela Álvarez, former Minister of Trade and Industry of the country, Alberto Alemán, the former administrator of the Panama Canal, and Domingo Latorraca, partner-director of Deloitte in that country.

The country is yet negotiating bilateral information exchange agreements with Japan and Colombia and renegotiating what had been established with France; it has also signed with the United States an intergovernmental agreement for the implementation of the Foreign Account Tax Compliance Act (FATCA).