Panama's Banks Close To Compliance With Basle Recommendations

by Robert Lee, Tax-News.com, London

22 April 2002

According to reports, Panama's banking industry is nearing full compliance with the Basle Committee's recommendations on regulation.

Sources within the industry have revealed that, following a concerted effort to improve the jurisdiction's reputation as an international banking centre, the sector now meets 23 of the 25 Basle principles on banking supervision and best practice.

Local newspaper, El Panama America, revealed last week that the country's banking regulator has designed a working plan to ensure that the industry is compliant with the two remaining recommendations by the end of this year.

Until recently, it was assumed that Panama would be included in the updated OECD blacklist of 'uncooperative tax havens', as despite the industry's best efforts, there were fears that not enough had been achieved to mollify the multilateral body.

However, the jurisdiction did not, in fact, appear on the amended list released last Thursday, suggesting that a last minute deal with the OECD was reached.

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