PANAMA Law and Practice Contributed by: Inocencio Galindo, Omar Rodriguez, Maria Eugenia Brenes and Joy Paull Torres, Morgan & Morgan
Offences against natural resources • Illegal destruction, contamination or degradation of natural resources: three to six years’ imprisonment, increased by one-third to one half in aggravating circumstances (eg, protected areas, irreversible damage, falsified environmental data). • Unauthorised construction affecting water flow: two to five years’ imprisonment. • Obstruction of waste water flow: one to three years’ imprisonment or fines/weekend arrest. • Improper handling of hazardous materials or waste: four to eight years’ imprisonment, increased for toxic or explosive materials. • Illegal sale or acquisition of forestry permits: one to five years’ imprisonment or 50 to 100 days’ fine. • Exceeding authorised tree felling limits: two to five years’ imprisonment. • Unauthorised deforestation in protected or sensi - tive areas: three to seven years’ imprisonment. • Vegetation burning: one to three years’ imprison - ment or fines/weekend arrest, increased in aggra - vating cases. • Excessive emissions (noise, gases, etc) that cause pollution: two to four years’ imprisonment. Offences against wildlife • Illegal hunting, fishing or extraction of pro - tected species: two to four years’ imprisonment, increased in aggravating cases. • Illegal trafficking of endangered species or genetic resources: three to five years’ imprisonment, reduced if species are returned unharmed. • Introduction of harmful biological agents: four to eight years’ imprisonment. Urban planning and environmental compliance offences • Falsifying environmental studies or omitting key data: two to four years’ imprisonment, increased if damage occurs. • Public officials approving projects in violation of environmental law: two to four years’ imprison - ment. • Unauthorised permits for protected public spaces: six months to two years’ imprisonment. • Failure to comply with approved environmental plans: two to five years’ imprisonment, increased if serious harm occurs.
• Benefiting from illegal approvals: the same penalty as for the principal offender. • Illegal transfer of public land or protected areas: five to ten years’ imprisonment. • Unauthorised construction in protected or public areas: three to six years’ imprisonment. • Starting projects without required environmen - tal approvals: two to five years’ imprisonment, increased if damage occurs. • Approval of urban projects violating zoning laws: four to six years’ imprisonment. • Construction that endangers environment or public safety: two to four years’ imprisonment. Legal entities involved in environmental crimes Fines range from PAB5,000 to PAB100 million, depending on severity. Social Offences Panama’s labour laws regulate working conditions, safety and workers’ rights. While there is no specific law addressing modern slavery, violations such as forced labour or unsafe working conditions may be prosecuted under labour and criminal codes. Com - panies are expected to comply with: • minimum wage and working hour regulations; • occupational safety standards; and • anti-discrimination laws. Sanctions for violations include: • fines; • closure of facilities; and • legal action by affected workers or unions. Governance Offences Corporate governance is regulated primarily by Law 32 of 1927 and Law 5 of 2007, which governs compa - ny formation, board responsibilities and shareholder rights. While ESG-specific governance rules are not yet codified, Panama’s alignment with internation - al standards (eg, AML/KYC under Law 23 of 2015) means that companies must maintain ethical govern - ance practices or face regulatory sanctions, loss of licences, and reputational damage.
215 CHAMBERS.COM
Powered by FlippingBook