Regulatory Alerts2018-08-14
Circular 10-2018 Clarification on Point V of Circular No. SMV-9-2018
The Superintendency of the Securities Market of Panama issued Circular 10-2018 to clarify that Private Interest Foundations are classified as high-risk entities requiring enhanced due diligence. The regulator mandates that obligated subjects implement robust mitigation measures, including verifying foundational acts, regulations, and beneficial ownership information, to prevent the misuse of these structures. This directive aligns with FATF Recommendation 10 and Panamanian Law 23 of 2015, ensuring that risk assessments are properly documented and substantiated.
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