Agreement No. 014-2020 of December 15, 2020, Modifying Article 5 of Agreement No. 002-2019

REPUBLIC OF PANAMA
SUPERINTENDENCY OF BANKS
AGREEMENT No. 014-2020
(of December 15, 2020)
"By which Article 5 of Agreement No. 002-2019 is modified"

THE BOARD OF DIRECTORS

In exercise of its legal powers, and

CONSIDERING

That following the issuance of Law Decree No. 2 of February 22, 2008, the Executive Branch prepared a systematic compilation in the form of a Single Text of Law Decree No. 9 of February 26, 1998, and all its modifications, which was approved by Executive Decree No. 52 of April 30, 2008, hereinafter referred to as the Banking Law;

That Article 36 of Law No. 1 of January 5, 1984 establishes that the Superintendency of Banks shall supervise and ensure the proper functioning of the trust business;

That in accordance with paragraphs 1 and 2 of Article 5 of the Banking Law, it is the objective of the Superintendency of Banks to ensure the solidity and efficiency of the banking system and to strengthen and foster favorable conditions for the development of the Republic of Panama as an International Financial Center;

That in accordance with Article 11, section I, paragraph 5 of the Banking Law, it is a technical attribute of this Board of Directors to establish, within the administrative sphere, the interpretation and scope of legal or regulatory provisions in banking matters;

That by Agreement No. 002-2019 of April 11, 2019, Articles 14 and 15 of Agreement No. 10-2015 on the prevention of the improper use of banking and fiduciary services were modified, referring to the client profile for natural persons and the client profile for legal entities, with the aim of incorporating client tax information into the due diligence process within an adaptation period until May 15, 2020;

That through Agreement No. 004-2020 of May 7, 2020, Article 5 of Agreement No. 002-2019 was modified, with the aim of extending the adaptation period established for compliance with requirements regarding client tax information to December 31, 2020;

That in working sessions of this Board of Directors, the need and convenience of modifying Article 5 of Agreement No. 002-2019 has been highlighted.

AGREES:

ARTICLE 1. Article 5 of Agreement No. 002-2019 of April 11, 2019, is hereby amended as follows:

"ARTICLE 5. ADAPTATION PERIOD. Banking and fiduciary entities shall have an adaptation period until May 15, 2021, to comply with what is established in Articles 1 and 2 of this Agreement."

ARTICLE 2. This Agreement shall enter into force from the date of its promulgation.

Given in the city of Panama, on the fifteenth (15) day of the month of December of two thousand twenty (2020).

LET IT BE COMMUNICATED, PUBLISHED, AND COMPLIED WITH.

THE PRESIDENT, THE SECRETARY,
Luis La Rocca Nicolás Ardito Barletta