Participation in OECD (list year):
Panama is not a member of the Organization for Economic Co-operation and Development (OECD)
TerraLex Guide to Anticorruption Legislation
Welcome to the Terralex cross-border guide to anticorruption legislation
This guide offers information on the current regulations related anticorruption policies in various jurisdictions around the world. Please contact the listed contributors for specific questions.
How to Use: You can use the tools below to create bespoke reports for the jurisdiction(s) and topic(s) covered. Click into single jurisdiction for one location or use the compare tool to compare multiple jurisdictions. Select the jurisdictions and topics of interest to create your unique report. You also have the option to print or download using the ellipsis button in the top right corner.
Panama TerraLex Guide to Anticorruption Legislation Guide
- Firms:
- Morgan & Morgan
- Authors:
- Joy Torres
- Date posted:
- 01/12/2022
- Last update:
- 13/12/2022
Guidance
What is the applicable anticorruption legislation?
Panama Penal Code, Arts. 338-354. Law No. 42 of July 2, 1998, Inter-American Convention Against Corruption, Caracas, Venezuela.
Law No.15 of May 11, 2005, United Nations Convention Against Corruption, New York.
What does this legislation prohibit?
Acts against the “public administration”, including, bribery of national and foreign public officials, embezzlement, misappropriation, or other forms of diversion of public funds by public officials, illicit enrichment, private corruption, disclosure of confidential information, transnational bribery, illicit enrichment, misappropriation of public funds and influence peddling.
Does it cover bribes to foreign government officials?
Yes.
Does it cover business to business corruption?
No, it does not cover transactions between private companies, only if a public entity is involved.
Are facilitation payments allowed?
No.
Can a corporation be prosecuted for acts of overseas agents, intermediaries, joint venture partners, and third parties?
No, except if the crime produces or must produce their results in Panama, are committed to the detriment of a Panamanian or his rights, are committed by diplomatic agents, officials or Panamanian employees who have not been tried at the place where they were committed for reasons of diplomatic immunity, or a national authority has denied the extradition of a Panamanian or a foreigner.
Does the legislation have extra territorial reach?
No.
Can Directors of a company be found personally liable?
Members of the Directors cannot be personally liable for company acts, but the Legal Representative of a company can be found personally liable in certain cases.
What are the sanctions for breach of the legislation for Directors and corporations?
For corporations, cancellation or suspension of the license or registrations to operate, fines (not less than USD 5,000.00 nor more than double the injury or the economic benefit or, if the company is a provider of public transportation, not less than USD 25,000.00), prohibition to contract with the State (directly or indirectly) for a term not exceeding five years and/or Dissolution of the company. Directors are not personally liable
Can companies be held liable for corruption offences? If so, under which conditions?
Is there an obligation on companies to put in place preventive measures (such as a compliance program, a whistleblowing line)? If so, what are the sanctions?
Can the implementation of a compliance program constitute a mitigating circumstance in case of an established offense?
Is a corporate settlement procedure available for corruption offenses?
If conditional approval is possible, what type of conditions or commitments may be imposed? Are there any consequences for failing to comply with these conditions or commitments?
Disclaimer: This guide contains summaries of general principles of law. It is not a substitute for specific legal advice and should not be relied upon in relation to the application of the law or subject matter covered.