PANAMA Law and Practice Contributed by: Kharla Aizpurua Olmos, Roberto Vidal, Miguel Arias and Eduardo Oteiza, Morgan & Morgan
regulatory body that supervises and regulates the insurance and reinsurance business. 8.2 Treatment of Different Types of Insurance The participants treat each type of insurance in accordance with the applicable current regulations. There is only one insurance regulator, which is the SSR, and regulation is mainly focused on the follow - ing lines of business, each of which requires its own respective licence: • personal – individual life in all its modalities, collec - tive or group, personal accidents, health, industrial, annuities, income, disability, loss of income, assis - tance to travellers or any other insurance covering exposure to loss and risks of persons; • general – fidelity, fire and similar, maritime, land and/or air transport, sea and air hull, automobile, aviation, civil liability, theft, technical branches, property titles, various risks, extensions of manu - facturer guarantee, or any other insurance not included in the field of people and/or guarantees/ bonds; and • guarantee and bond – compliance with contracts, with payment and other related guarantees or bonds relating to the construction of works or for the supply of materials or equipment or any other bonds/guarantees. Each of these lines of business has different applica - ble regulations (eg, for purposes of reserves or obliga - tions of the parties). Regtech providers are not specifically regulated in Panama. However, financial companies generally use their services in order to comply with AML laws, such as Law 23. 9.2 Contractual Terms to Ensure Performance and Accuracy In Panama, there are no regulations governing the terms and conditions of contracts with regtech pro - viders, allowing financial services companies the flex - 9. Regtech 9.1 Regulation of Regtech Providers
ibility to negotiate their contractual obligations with these providers.
10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry Due to a lack of regulation, traditional players have been reluctant to implement blockchain technology in the provision of their financial services. 10.2 Local Regulators’ Approach to Blockchain In recent years, there have been several legislative initiatives, but none have been enacted into law. Panama’s latest legislative efforts to regulate block - chain and virtual‑asset activities are reflected in Draft Bills 247, 326 and 487, all of which remain under con - sideration in the National Assembly and have not yet passed the three‑debate process required for enact - ment. • Draft Bill 247 of 2025, introduced by the Com - merce and Economic Affairs Commission, propos - es the most comprehensive crypto‑focused regime to date. It defines key digital‑asset concepts and would create the National Council of Digital Assets (CONAD) to supervise and co-ordinate policy for cryptocurrencies and virtual asset service provid - ers (VASPs). The bill mandates VASP registration, FATF‑aligned AML controls, audits, transparency obligations and regulatory oversight for token offerings, while also introducing tax incentives for blockchain start-ups. • Draft Bill 326 of 2025, also pending legislative approval, complements this approach by aiming to establish a mandatory AML‑driven licensing and supervision framework for VASPs under the author - ity of the SMV. It would reinforce FATF compli - ance, formalise VASP registration through a public registry, and allow banks to engage in virtual‑asset activities subject to strict KYC, traceability and risk‑management standards. • Draft Bill 487, introduced in January 2026 and still in the early stages of debate, would incor - porate blockchain activity into a broader fintech
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