Registration Process for Issuers of Payment Instruments and Digital Currency in Panama
The activity of Issuers of Payment Instruments and Digital Currency is regulated by Law 23 of April 27, 2015 (“Law 23″). This law stipulates that entities engaged in these activities will be supervised in the prevention of money laundering, financing of terrorism, and financing of the proliferation of weapons of mass destruction (ML/FT/WMDP). It should be noted that although the SBP has not yet issued a public resolution, it is actively working on it.
Companies have the option to be Issuers of Payment Instruments, that is, companies dedicated to facilitating payment transactions between two parties; Issuers of Digital Currency, that is, companies that provide a digital application that allows reloading money and making purchases through the platform (virtual debit card) or from a physical prepaid debit card; or both activities can be combined.
For registration as Issuers of Payment Instruments and Digital Currency, companies must submit a formal note to the SBP. This note should contain detailed information about the company and its business plan or model. The SBP will evaluate this plan and issue an administrative position on it. In case the company fits into one or both of the mentioned activities, the SBP will provide the requirements for formal registration. It is important to note that an inspection fee will be applied, calculated based on the amount of the company’s assets.
It is essential that all companies involved in these activities understand that their services are regulated by Law 23 and should, therefore, notify their operations to the regulatory entity. Companies that comply with these requirements and register correctly will be termed “Financially Obligated Subjects”. This term refers to those entities that, due to their economic activity, are obliged to comply with the regulations to prevent money laundering, the financing of terrorism, and the proliferation of weapons of mass destruction.
In order to maintain the stability of the financial system and enhance its competitiveness in the technological financial services sector, the SBP invites all companies wishing to operate in these fields to contact the Superintendence. In this way, their business model can be known and evaluated, determining if their activities comply with what is stipulated by Law 23 of 2015, to then obtain registration as a Financially Obligated Subject.
Finally, we urge all companies that believe their activities align with the definitions of Issuer of Payment Instruments or Issuer of Digital Currency, to not hesitate to contact us. Our team at Quijano & Associates is ready to offer the necessary advice to facilitate your registration and regulatory compliance. If you believe your company could benefit from our services, please write to us at quijano@quijano.com.
