PANAMA CITY: Panama needs to immediately boost transparency and regulation of its financial sector to shake off its reputation — deepened by the “Panama Papers” scandal — of being a hub for tax evasion, a report released Monday said.
“Decisions, investment, legislation and a high degree of commitment by the authorities and regulatory bodies of Panama” are needed to keep Panama off lists that would punish it as a designated tax or money-laundering haven, the report by the government-appointed international Committee of Independent Experts said.
Automatic sharing of tax information and holding lawyers to higher standards were among its key recommendations.
“The moment has come. The country can no longer postpone decision-making in this field,” it said.
The panel was established by Panamanian President Juan Carlos Varela in April, days after the “Panama Papers” revelations showed how a law firm in the Central American nation set up companies to help the world’s wealthy shield their assets from scrutiny.
It was seen as an effort by Varela to limit the damage from the scandal, which sparked tax probes in several countries around the world, protests that led to the resignation of Iceland’s prime minister, and prompted France to put Panama back on its blacklist of uncooperative tax havens.
Transparency International, a corruption watchdog, said the experts’ report “does not go far enough.”
It tweeted a reaction from its international advocacy coordinator, Max Heywood, saying: “Unless Panama decides to join the handful of countries that have committed to creating a public register that names the real owners of all corporations and trusts, the criminals will continue to win the fight against corruption.”
