Panama City in Panama. SAN SALVADOR, El Salvador — Panama has been removed from the European Union’s list of high-risk countries for money laundering, a decision celebrated by officials in the Central American nation as a significant step toward restoring global trust and unlocking foreign investment.
During a plenary session held on Tuesday in Strasbourg, the European Parliament approved to officially remove Panama and several other jurisdictions from the EU’s blacklist of countries deemed to have strategic deficiencies to combat money laundering and terrorist financing.
The decision follows the European Commission’s recommendation in June and affirms that Panama has made “significant technical progress,” particularly in improving transparency regarding beneficial ownership information and international cooperation.
“This is a recognition of the serious work we are doing as a country,” President José Raúl Mulino posted on X, formerly Twitter. “Thanks to the entire government team that worked to restore international trust.”
Panama’s removal signifies a significant change in its global financial position. Since 2020, the country has faced scrutiny, even after being delisted by the Financial Action Task Force (FATF) in October 2023.
The EU has maintained its classification of Panama as high-risk due to ongoing concerns regarding transparency and information sharing.
However, the Commission now affirms that Panama’s authorities are effectively responding to international requests and have addressed key deficiencies.
According to a statement by the Panamanian Foreign Ministry, the vote represents a “just recognition” of efforts led by the administration of President Mulino, who took office in July 2024.
The benefits of this regulatory shift are expected to be broad. Officials say the decision will:
- Strengthen Panama’s international reputation
- Improve investor confidence and the local business environment
- Facilitate financial and commercial transactions with European institutions
- Boost competitiveness in Panama’s financial and logistics sectors
- Streamline international trade processes
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In total, the updated EU list removes Panama, Gibraltar, Barbados, Jamaica, the Philippines, Senegal, Uganda, and the United Arab Emirates.
At the same time, the European Union added 10 new countries to the blacklist, including Venezuela, Algeria, Kenya, and Nepal.
Being on the blacklist does not carry formal sanctions. However, it imposes additional due diligence obligations on European banks and companies dealing with entities in those jurisdictions, often leading to delays, higher compliance costs, and reputational damage.
The Panamanian government has long rejected allegations of serving as a tax haven.
In various public statements, President Mulino has argued that the country has been unfairly labeled and warned that Panama would exclude companies from nations that maintain “discriminatory lists” from bidding on public contracts.
For Panama, the European Parliament’s decision is more than a symbolic gesture—it is a long-sought diplomatic victory with concrete economic implications.
Removal from the list is based on sustained reform, international cooperation, and compliance with global standards, including those set by the FATF.
SEE ALSO: Costa Rica Cracks Down on Money Laundering Amid Rising Drug Violence
