Panama’s President Laurentino Cortizo affirmed that the bill approved by the Assembly, and which his administration will be reviewing, should adhere to the Panamanian financial system and be stronger in relation to money laundering.
At the end of April, the National Assembly of Panama approved the crypto bill presented by Congressman Gabriel Silva, which among the articles establishes that commercial operations with cryptocurrencies are exempted from the payment of the Income Tax, which was originally set at 4% of recorded profits.
The only thing missing is the signature of the president of the nation for the bill to become national law. However, the president has objected to it. It is worth noting that he is not against its approval, but he considers that there are aspects that need to be improved.
In an interview with the director of Bloomberg Economics, Stephanie Flanders, Panamanian president, Laurentino Cortizo Cohen, stated that the approval of the Crypto Law does not have to be in its current form. He warned that there are conditions, such as that it must be in line with the country’s financial system. In other words, he said that he does like the law but it needs to be reviewed more.
“It’s a good law.” said Cortizo, but “I must be very careful.”
Also, while speaking at the conference Bloomberg New Economy Gateway Latin America in Panama City, Cortizo stated more forcefully:
“If I’m going to respond right now with the information I have, which is not enough, I’m not going to sign that law. I have to be very careful if the law has clauses related to the control of money laundering activities”.
At the gala dinner of the event, Cortizo Cohen also said that Panama has a sound financial system and complies with global regulations and that si la nueva ley de criptoactivos no es fuerte, “ in this sense the sanction would be partial”.
According to the agency, the governor explained that the process of approval of a law in the country is that after it has been approved by the National Assembly, the lawyers of the Presidency of the Republic review it and recommend its approval or not.
President Cortizo is on a legal deadline (of 30 working days) to sanction and enact the crypto law. If he approves it as is, this would make Panama the second country in Central America after El Salvador and the third in the world ( Central African Republic was the second) to legalize cryptocurrencies as a means of payment.
But it’s not so easy for the law to be approved in its entirety, as Cortizo warned that it would have to analyse whether the legislation provides for the measures AML anti-money-laundering laws, regulations, and procedures that aim to end the unlawful income practices. (anti-money laundering) to keep the country’s efforts on track to move out of the lists of Financial Action Task Force (FATF).
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