Law 41 of October 2, 2000, Adding Chapter VI on Money Laundering to Title XII and Title XIII to Book II of the Penal Code

LEGISLATIVE ASSEMBLY REPUBLIC OF PANAMA LEGISPAN

LAW NO. 41 OF OCTOBER 2, 2000

Adding Chapter VI, titled Money Laundering, to Title XII, and Title XIII, titled Final Provisions, to Book II of the Penal Code, and enacting other provisions.

THE LEGISLATIVE ASSEMBLY DECREES:

Article 1. A paragraph is added to Article 170 of the Penal Code, as follows:

Article 170. ... The penalty described above shall be doubled when the violator is a public official who had access to the information, by reason of one of the crime prevention measures regarding the offense of money laundering provided for by law.

Article 2. Article 190 of the Penal Code is hereby amended as follows:

Article 190. Whoever, through deception, procures for themselves or a third party an illicit benefit to the detriment of another, shall be punished with imprisonment of 1 to 4 years and a fine of 50 to 200 days-fines. The penalty shall be 5 to 10 years of imprisonment if the patrimonial injury exceeds one hundred thousand balboas, or if it is committed by attorneys-in-fact, managers, or administrators in the exercise of their functions, or if it is committed to the detriment of public administration or a charitable establishment.

Article 3. Chapter VI, titled Money Laundering, is added to Title XII, Book II, of the Penal Code, comprising Articles 389, 390, 391, 392, and 393, as follows:

Chapter VI Money Laundering

Article 389. Whoever receives, deposits, negotiates, converts, or transfers money, securities, goods, or other financial resources, knowing that they originate from activities related to drug trafficking, qualified fraud, illegal arms trafficking, human trafficking, kidnapping, extortion, embezzlement, corruption of public officials, acts of terrorism, robbery, or international vehicle trafficking, as provided for in Panamanian criminal law, with the object of hiding or covering up their illicit origin or helping to evade the legal consequences of such criminal acts, shall be punished with a penalty of 5 to 12 years of imprisonment and a fine of 100 to 200 days-fines.

Article 390. The same penalty referred to in the previous article shall apply to:

1. Whoever, knowing that the funds, securities, goods, or other financial resources originate or have been obtained directly or indirectly from any of the illicit activities indicated in Article 389 of this Code, hides or covers up their true nature, origin, location, destination, ownership, or helps facilitate the benefit thereof.
2. Whoever, knowing that the funds, securities, goods, or other financial resources originate from any of the illicit activities provided for in Article 389 of this Code, carries out transactions, personally or through an intermediary natural or legal person, in banking, financial, commercial, or any other type of establishments.
3. Whoever, personally or through an intermediary, knowingly provides false information to a banking, financial, commercial, or any other type of establishment for the opening of accounts or for carrying out transactions with money, securities, goods, or other financial resources, when these originate or have been obtained from any of the illicit activities indicated in Article 389 of this Code.

Article 391. Whoever, knowingly taking advantage of their position, employment, trade, or profession, authorizes or permits the crime of money laundering described in Article 389 of this Code, shall be punished with imprisonment of 3 to 8 years.

Article 392. Whoever, knowingly receives or uses money or any financial resource originating from crimes related to drug trafficking or money laundering, for the financing of political campaigns or of any nature, shall be punished with imprisonment of 5 to 10 years and disqualification from exercising public functions for the same term, after the imprisonment penalty has been served.

Article 393. A public official who hides, alters, steals, or destroys evidence or proof of crimes related to drug trafficking or money laundering, or procures the escape of a person apprehended, detained, or sentenced, or receives money or other benefits with the intent to favor or prejudice any of the parties in the process, shall be punished with a penalty of 5 to 10 years of imprisonment and disqualification from holding public office for up to 10 years.

Article 4. Title XIII, titled Final Provisions, is added to Book II of the Penal Code, comprising Articles 394, 395, and 396, as follows:

Title XIII Final Provisions

Article 394. The periods of days, months, and years referred to in this Code shall be calculated in accordance with the provisions of the Civil Code.

Article 395. This Code repeals the Penal Code approved by Law 6 of November 17, 1922, and all provisions that have reformed, added to, or complemented it.

Article 396. This Code shall enter into force one hundred eighty (180) days after its sanction. The Executive Branch shall promptly produce an official edition in book form to distribute it in all public offices and make it available for sale throughout the Republic.

Article 5. Article 31 of Law 23 of December 30, 1986, as modified by Law 13 of July 27, 1994 (Consolidated Text), is hereby amended as follows:

Article 31. In the case of other goods that are not money or securities, the bank or the creditor entity may declare the term of the debt as due and request the judicial auction of the goods, in order to compensate the obligation. Personal notification shall be given to the investigating official in these proceedings; if not done, the respective process shall be nullified. Any excesses, if any, shall remain under the control of the competent prosecutor's office. Both actions of ownership and requests for the lifting of the provisional seizure of instruments and other goods that were provisionally seized under the control of the competent prosecutor's office, shall be resolved by the competent court, which shall decide on the provisional possession or administration of the goods, prior to the opinion of the investigating official.

Article 6. With respect to the procedural aspect regarding investigations, money, goods, securities, or other financial resources related to the crime of money laundering, Articles 28, 29, 30, 31, 33, and 34 of Law 23 of December 30, 1986, as modified by Law 13 of July 27, 1994 (Consolidated Text), shall apply, insofar as they are compatible. In the case of the crime of money laundering resulting from crimes related to drugs, all procedural norms contained in the laws indicated in the previous paragraph shall apply, insofar as they are compatible.

Article 7. When judicially ordered confiscation of goods, instruments, money, or securities that are the product of money laundering, the judge, in the sentence, shall order that they be made available to the Special Fund for Retirees and Pensioners (FEJUPEN), created by Law 6 of June 16, 1987, as modified by Laws 18 of August 7, 1989, 15 of July 13, 1992, and 100 of December 24, 1998. Money seized as a result of the crime of money laundering shall be immediately made available to FEJUPEN, subject to the sentence ordering their definitive incorporation into said Fund or their return to the defendant or the victim, as the case may be. The provisions of this article shall not apply when the money laundering proceeds from crimes related to drugs.

Article 8. This Law adds a paragraph to Article 170, Chapter VI to Title XII, and Title XIII, both to Book II of the Penal Code; modifies Article 31 of Law 23 of December 30, 1986, as modified by Law 13 of July 27, 1994 (Consolidated Text), as well as Article 190 of the Penal Code; and repeals Articles 263 A, 263 B, 263 C, 263 CH, 263 E, and 263 G of this Code, and any provision contrary thereto.

Article 9. This Law shall enter into force from its promulgation.

LET IT BE COMMUNICATED AND COMPLIED WITH.

Approved in third debate, in the Justo Arosemena Palace, City of Panama, on the 2nd day of the month of October of the year two thousand.

The President, Laurentino Cortizo Cohen

The General Secretary, José Gómez Núñez