Everything You Need to Know About the New Single Registry of Final Beneficiaries in Panama

El Private and Unique Final Beneficiary Registration System is a centralized platform created by Law 129 of 2020. It is managed by the Superintendency of Non-Financial Subjects, for the purpose of recording the information of the final beneficiaries of legal entities in Panamanian territory. This system guarantees the confidentiality of the recorded data, limiting access only to competent authorities and under specific circumstances, such as judicial investigations.

The main purpose of the System is to combat crimes such as money laundering and the financing of terrorism through a clearer identification of the people who actually control or benefit from a company. If you represent a corporation, as a resident agent or owner, complying with these regulations is now a mandatory requirement.

One of the aspects that raises the most doubts about the Single System is whether there are costs associated with registration. According to the Act, initial registration is completely free, eliminating economic barriers to compliance with this legislation.

• Each resident agent must collect and record essential information about the legal entity, including:

• Full identification of the final beneficiary
• Legal documents that support participation in society
• Updated data that includes nationality, address, and percentage of ownership or control.

Updating data is an ongoing responsibility; lack of compliance can result in severe legal penalties. More information on this is detailed below.

The law requires resident agents to record information about legal entities and their ultimate beneficiaries within a period of 30 business days since the relationship was established. Responsibility includes:

• Register all companies for which you act as a resident agent.
• Update the data in the system in the event of a change in the shareholder structure or other types of internal modifications.

If you want to resign from your role as resident agent, you must follow a formal process that includes notifying the company you represent and ensuring that a new agent is appointed, after updating the registration. It is essential not to leave outdated data in the system, as this can lead to serious penalties.

Failure to comply with this law can result in severe penalties for both resident agents and legal entities. Among the most notable penalties are:

• Fine of up to USD 5,000 for not recording the data within the stipulated deadline.
• Temporary suspension of the legal entity's ability to operate, until the data is updated.
• Inclusion in lists of non-compliance that affect the legal reputation of the parties involved.

To avoid these penalties, we recommend working with trained legal professionals, such as the Limitless Legal team, who will accompany you to ensure compliance with all current regulations.

One of the most important aspects of the Private and Unique System for the Registration of Final Beneficiaries is the confidentiality of information. Only Panamanian authorities can access data for specific judicial proceedings. However, the system requires resident agents to handle data with extreme care, ensuring its correct updating and secure storage.

Some key recommendations for ensuring compliance are:

• Establish an internal monitoring system for necessary updates.
• Work with reliable legal counsel to correctly interpret the law.
• Document any changes in the organizational structure officially and ensure that they are reflected in the system.

Protecting this information is not only a legal requirement, but it also protects the business interests of companies and their shareholders.