{"id":10264,"date":"2026-02-10T09:17:31","date_gmt":"2026-02-10T14:17:31","guid":{"rendered":"https:\/\/focusalcogal.com\/?p=10264"},"modified":"2026-04-24T09:19:45","modified_gmt":"2026-04-24T14:19:45","slug":"from-paper-to-geolocation-the-new-era-of-banking-compliance-in-panama","status":"publish","type":"post","link":"https:\/\/focusalcogal.com\/en\/from-paper-to-geolocation-the-new-era-of-banking-compliance-in-panama\/","title":{"rendered":"From Paper to Geolocation: The New Era of Banking Compliance in Panama"},"content":{"rendered":"[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_column_text]\n
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In January, the Superintendency of Banks of Panama (SBP) issued Agreement No. 1-2026, which not only repeals Agreement No. 10-2015, but also redefines the compliance framework within Panama\u2019s financial sector. After a decade under the previous framework, this new regulation responds to two inescapable pressures: the need for operational efficiency through technology and the increasing sophistication of international compliance standards.<\/p>\n

For our clients in the banking and fiduciary sectors, the transition will require strategic adjustments. Below, we provide an in-depth analysis of the structural reforms, contrasting the repealed provisions with the new regulatory regime (\u201cvis-\u00e0-vis\u201d).<\/p>\n

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  1. Innovation: \u201cInferential Geolocation\u201d as a Regulatory Standard<\/strong><\/li>\n<\/ol>\n

    Perhaps the most innovative element of the Agreement is the technical regulation of digital onboarding procedures.<\/p>\n

    Previous framework:<\/strong> Relied heavily on physical or documentary validation to mitigate impersonation or fraud risks in non-face-to-face account openings.<\/p>\n

    Current regulation (Art. 14):<\/strong> Introduces the concept of inferential geolocation. In digital onboarding, it is no longer optional entities must utilize technical signals (such as IP address, network type, VPN or proxy detection) to verify that the client\u2019s actual location corresponds to the declared location. This increases the barrier for malicious actors and modernizes the digital security infrastructure of Panama\u2019s banking sector.<\/p>\n

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    1. Efficiency: Risk-Based Simplification of Due Diligence<\/strong><\/li>\n<\/ol>\n

      The Agreement abandons the \u201cone-size-fits-all\u201d approach in favor of a truly risk-based model.<\/p>\n

      Previous framework:<\/strong> Account opening processes could be equally burdensome for both simple savings accounts and complex wealth structures, generating unnecessary friction.<\/p>\n

      Current regulation (Arts. 15\u201317):<\/strong> Formalizes the regime for Simplified Account Opening and Due Diligence.<\/p>\n

      Threshold:<\/strong> Accounts with balances or aggregate monthly movements not exceeding B\/. 5,000.00 (e.g., Christmas, school, or payroll accounts) qualify for reduced due diligence requirements.<\/p>\n

      Impact:<\/strong> Enables institutions to automate onboarding for low-risk clients, while reserving expert human review for Enhanced Due Diligence cases (e.g., PEPs or complex corporate structures).<\/p>\n

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      1. Corporate Governance: Strengthening the Lines of Defense<\/strong><\/li>\n<\/ol>\n

        The SBP has placed renewed emphasis on the independence and technical capability of compliance functions.<\/p>\n

        Previous framework:<\/strong> While independence was required, there were grey areas concerning personnel rotation across control areas.<\/p>\n

        Current regulation (Arts. 4, 47, 49):<\/strong><\/p>\n