General Resolution SMV No. JD-1-20 of March 5, 2020 Establishing Special Considerations for the Information Requirement in Articles 7 and 8 of Agreement 06-2015 for Expired Venezuelan National Passports

Promulgated in the Official Gazette No. 28990-A of March 27, 2020.

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REPUBLIC OF PANAMA
BOARD OF DIRECTORS
SECURITIES MARKET SUPERINTENDENCE

General Resolution SMV No. JD-1-20
Of March 5, 2020

“Establishing special considerations for the information requirement set forth in Articles 7 and 8 of Agreement 06-2015 of August 19, 2015, for passports of Venezuelan nationals that are expired”

The Board of Directors of the Securities Market Superintendence,

in the exercise of its legal powers, and

CONSIDERING:

That Law 67 of September 1, 2011, reformed Decree-Law 1 of July 8, 1999, and created the Securities Market Superintendence as an autonomous state body, with legal personality, own assets, and administrative, budgetary, and financial independence.

That the Single Text of Decree-Law 1 of July 8, 1999, as ordered by the National Assembly (hereinafter: Single Text), establishes in its Article 2, numerals 1 and 5, that the Superintendence, to guarantee its autonomy, has among its powers and advantages:

“1. Act with independence in the exercise of its functions and be subject to the oversight of the Comptroller General of the Republic, as established by the Political Constitution of the Republic and this Law. This oversight will not in any way interfere with the administrative powers of the Superintendence.

…

5. Establish its organizational and administrative structure.”

That, in accordance with Articles 5, 6, 10 (numeral 20), 19, and 20 of the Single Text of Decree-Law 1 of July 8, 1999, the Board of Directors acts as the highest body for consultation, regulation, and setting of the general policies of the Superintendence, and has among its attributes the power to issue resolutions of general application, which must be published in the Official Gazette and enter into force from their promulgation, unless the Board of Directors establishes another date.

That Articles 19 and 22 of Law 23 of April 27, 2015, institute the Securities Market Superintendence as the Supervisory Body, regarding measures to prevent money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, for the following obligated financial subjects: self-regulated organizations, securities houses, investment managers, pension fund administrators, severance fund administrators, investment companies, and self-administered investment companies, investment advisors, and providers of administrative services for the securities market.

That this Superintendence, through Agreement 06-2015 of August 19, 2015, adopted the provisions applicable to such obligated financial subjects, regarding measures to prevent money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.

That Articles 7 and 8 of Agreement 06-2015 of August 19, 2015, determine within the minimum measures that obligated financial subjects must apply, in the identification and verification of the identity of a client, natural person, and legal entity, the obtaining of a valid passport, when it concerns a person of foreign nationality.

That, due to the political situation traversing the Bolivarian Republic of Venezuela, a large number of passports of persons of Venezuelan nationality who are in Panamanian territory are expired or about to expire and have not been able to be renewed, leading to their migratory status being in an irregular state.

That, as a result of the foregoing, the Government of the Republic of Panama, through the Ministry of Public Security, issued Executive Decree 123 of March 26, 2019, modified by Executive Decree 134 of April 23, 2019, which allowed the use of passports of persons of Venezuelan nationality that are expired up to 2 years, counted from the date of their expiration,

Promulgated in the Official Gazette No. 28990-A of March 27, 2020.
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with the purpose that they can carry out migratory procedures in Panama, provided they have the extension stamp or letter of validation of an expired passport issued by the Consulate of the Bolivarian Republic of Venezuela in Panama.

That the Ministry of Public Security, through Executive Decree No. 1316 of December 10, 2019, granted a 2-year extension to the validity of expired passports of Venezuelan citizens who are in Panamanian territory and whose original expiration date does not exceed 3 years from the date of entry into force of the aforementioned Executive Decree, in order to allow the carrying out of migratory, labor, and any other necessary procedures before a governmental entity.

That, in working sessions of this Board of Directors, the need and convenience of establishing special considerations within the due diligence process established for obligated financial subjects has been manifested, specifically: regarding the information requirement referred to in Articles 7 and 8 of Agreement 06-2015 of August 19, 2015, in accordance with what is established in Executive Decree 1316 of December 10, 2019.

Therefore, the Board of Directors of the Securities Market Superintendence, in the exercise of its legal powers,

RESOLVES:

ARTICLE FIRST: for the purposes of compliance with the identification and verification of the identity of a client, natural person, and legal entity, referred to in Articles 7 and 8 of Agreement 06-2015 of August 19, 2015, obligated financial subjects, under the supervision of the Securities Market Superintendence, will temporarily recognize as valid and in force the expired passports of persons of Venezuelan nationality, who are within the national territory and who, at the time of the entry into force of Executive Decree 1316 of December 10, 2019, had an expiration date no greater than 3 years, in such a way as to allow said persons to carry out procedures and access the services offered in the securities market.

The aforementioned temporary treatment will apply to those expired passports from December 12, 2016, and until the present temporary measure persists.

ARTICLE SECOND: this temporary measure will be applicable for a period of 2 years from the promulgation of Executive Decree 1316 of December 10, 2019, that is: until December 12, 2021.

ARTICLE THIRD: this resolution will enter into force from its promulgation in the Official Gazette.

LEGAL BASIS: Articles 5, 6, 10 (numeral 20), 19, and 20 of the Single Text of Decree-Law 1 of July 8, 1999. Articles 19, 22, and concordant of Law 23 of April 27, 2015. Executive Decree 1316 of December 10, 2019.

LET IT BE COMMUNICATED, PUBLISHED, AND COMPLIED WITH,

(signed) (signed)

Eduardo Lee Luis Chalhoub
President of the Board of Directors Secretary of the Board of Directors.

/aa.