PANAMA Law and Practice Contributed by: Kharla Aizpurua O., Roberto Vidal and Miguel Arias, Morgan & Morgan
It is important to note that while the exemption in (iii) does not require registration, certain for - malities must be observed in accordance with Agreement 1-2001 issued by the SMV, such as notifying (as opposed to registering) the SMV of the offering. 4.4 Syndication of Fiat Currency Loans Loan syndication frequently occurs in Panama; however, there are no specific laws or regula - tions regarding it.
trustee certificate, deposit certificate, mortgage certificate, option, and any other security, instru - ment, or right commonly recognised as a secu- rity or determined by the [SMV] to constitute a security.” Conversely, “financial instruments” are defined as “[a]ny contract that gives rise to the creation of a financial asset for one entity and the creation of a financial liability or equity instru - ment for another entity.” This includes all finan - cial assets and liabilities, whether securitised or not, as well as their derivatives, with underlying assets such as currencies and precious metals. The Securities Law classifies securities trad - ing platforms as “self-regulated entities.” These platforms must establish internal rules and regu - lations based on the following principles: • protecting the interests of investors; • promoting cooperation and coordination among individuals responsible for processing information about securities, as well as for trading, safeguarding, clearing, and settling securities; • ensuring fair and representative participation of members in governing bodies; • ensuring that fees and expenses paid by members are reasonable and equitably shared; • reporting any violations of the Securities Law by members, directors, officials, or employ - ees to the SMV; • monitoring members, directors, officials, and employees to ensure compliance with internal rules, and establishing corresponding discipli - nary procedures and sanctions; • ensuring the confidentiality of transactions; and • preventing deceptive and manipulative prac - tices or any actions that may affect market transparency, promoting fair practices in securities trading and fostering the develop - ment of an efficient market.
5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails
In general terms, payment processors use exist - ing payment rails and create or implement new ones to the extent they relate to new technolo - gies such as blockchain. 5.2 Regulation of Cross-Border Payments and Remittances Cross-border payments and remittances are regulated from the perspective of tax implica - tions, regulated banks and AML/CFT standards. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms The Securities Law mandates that trading plat - forms for securities and other financial instru - ments must be regulated by the SMV and require a license issued by this entity. The law defines “securities” as “[a]ny bond, negotiable com- mercial instrument, or other debt security, stock (including treasury stock), recognised stock right in a custody account, share, participation unit, participation certificate, securitisation certificate,
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