Agreement No. 4 (2025) Modifying Articles 6 and 9 of Agreement No. 1-2011 on Banking Product and Service Transparency Guidelines

Republic of Panama
Superintendence of Banks of Panama
AGREEMENT No. 4-2025
(June 17, 2025)

"By which Articles 6 and 9 of Agreement No. 1-2011, which set guidelines for the transparency of information regarding the use of banking products and services, are modified."

THE BOARD OF DIRECTORS

In exercise of its legal powers, and

CONSIDERING:

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

That in accordance with numerals 3 and 4 of Article 5 of the Banking Law, it is the objective of the Superintendence of Banks to promote public confidence in the Banking System and to ensure legal balance between the banking system and its clients;

That in accordance with numeral 5 of Article 11 of the Banking Law, it is the responsibility of this Superintendence to establish, within the administrative scope, the interpretation and scope of legal or regulatory provisions in banking matters;

That in accordance with numeral 19 of Article 16 of the Banking Law, the Superintendent of Banks has the authority to ensure that banks provide their clients with information that guarantees the highest transparency in banking operations;

That the principles established in Titles V and VI of the Banking Law aim to contribute to the contractual relationship with the necessary and desired equity to guarantee the balance of the parties;

That in accordance with Article 192 of the Banking Law, banks are obligated to provide their services to banking clients with transparency, probity, and equity;

That the transparency of information related to banking products and services constitutes an important factor for promoting competition in the market, which contributes to the sound development of the banking system and allows clients to make their decisions on a more informed basis;

That through Agreement No. 1-2011 of January 4, 2011, this Superintendence established the guidelines for the transparency of information regarding the use of banking products and services;

That Articles 6 and 9 of Agreement No. 1-2011 establish that banks must provide clients and potential clients, from the beginning of the relationship, the terms, conditions, and all necessary information that they must know before subscribing to a contractual relationship;

That it is necessary to create mechanisms that allow this Superintendence to ensure that due transparency is given regarding banking products and services;

That in sessions of this Board of Directors, the need and convenience of modifying Articles 6 and 9 of Agreement No. 1-2011 have been highlighted, in order to ensure that due transparency is given regarding banking products and services.

AGREES:

ARTICLE 1. Article 6 of Agreement No. 1-2011 of January 4, 2011, is hereby amended as follows:

Agreement No. 4-2025

"ARTICLE 6. DISCLOSURE OF INFORMATION TO POTENTIAL CLIENTS. Banks, prior to the celebration of any contract, must provide in writing to potential clients of the offered service all the necessary information that they must know before subscribing to a contractual relationship.

Banks must have personnel duly trained and updated on the topics contemplated in the contracts, in order to answer inquiries that potential clients may have regarding the content thereof.

Information regarding interest rates, commissions, charges for third-party accounts, and other relevant conditions referred to the products and the provision of services that banks disclose to potential clients must be detailed in order to allow them to have full knowledge of them, understand the involved cost, and make comparisons between the rates applied by different banks.

In the case of banking operations where it corresponds to the interested party to assume the payment of taxes, the respective obligation, the type of tax to which it is subject, the applicable percentage, and, if applicable, the applicable amount must be indicated promptly and expressly.

In cases where the amount of some commissions and charges for third-party accounts cannot be determined at the time of signing the contract, at least the criteria to be applied for their calculation and corresponding charge must appear.

The information referred to in the preceding paragraphs must be disseminated free of charge, clearly, explicitly, and understandably in order to avoid that its text may generate confusion or incorrect interpretations.

PARAGRAPH. When the bank, through promotional fairs or other physical or digital means, carries out special sales of its products and services related to the setting or charging of interest rates, commissions, charges for third-party accounts, and other relevant conditions referred to said products or services, it must ensure to inform potential clients in advance, clearly, explicitly, and understandably through the corresponding means, the period and other special conditions to which such promotions are subject, in order to comply with the principle of transparency established in this Agreement.

When the promotions offered by the banking entity are concluded with the client, the bank must ensure to document physically or digitally the period in which it will maintain the benefits of the promotion (days, months, or years) and the other terms and conditions, as well as the acceptance made by the client."

ARTICLE 2. Article 9 of Agreement No. 1-2011 of January 4, 2011, is hereby amended as follows:

"ARTICLE 9. MEANS TO INFORM THE CLIENT ABOUT INTEREST RATES, COMMISSIONS, CHARGES FOR THIRD-PARTY ACCOUNTS OF PRODUCTS AND SERVICES. Banks must comply at all times with the obligation contained in Article 193 of the Banking Law, to inform the client, from the beginning of the relationship, the terms and conditions applicable to the particular contract.

In the case of active operations, under the installment payment system, when approving the operation, banks must communicate the installment to the client in writing, with the minimum inherent information detail. In case of doubts regarding the concepts contained in said document, the bank must clarify them. After reading the document and resolving any doubts, there shall be a record of having notified the client and having delivered a copy.

In contracts with active operations, entities must state the nominal and effective rates, in this order and consecutively, expressed in annualized form, in letters and numbers highlighted to ensure their visibility, as well as the formula for their calculation.

In the case of active operations, whenever there are variations in interest rates, the bank must notify the client in advance, who must keep the bank informed about changes in their address or phone numbers for the purposes of this and other notifications. Likewise, in the event that the insurance policy backing an obligation has expired or been cancelled, the bank must ensure to notify the client of such condition.

In the case of active operations linked to mortgage loans, where the charging of renewal commissions has been agreed upon, the bank must send a reiterative notice to the client of the commission charge, at least two (2) months in advance of the date on which the charge will be made. This notice will be made through the notification means agreed upon in the banking services contract, indicating the amount to be paid, the criteria applied to calculate the commission, the date, and the different methods with which the client has to meet the charge."

ARTICLE 3. VALIDITY. The provisions of this Agreement shall enter into force starting from January 2, 2026.

Given in the city of Panama, on the seventeenth (17) day of the month of June of two thousand twenty-five (2025).

LET IT BE COMMUNICATED, PUBLISHED, AND COMPLIED WITH.

THE PRESIDENT, THE SECRETARY,
Rafael Guardia Adriana Raquel Carles