Obligated subjects under Law 254: how to know if your company qualifies

Many companies find out too late that they're obligated subjects under Panama's Law 254. By then, they should already have had policies, controls, and reporting in place. Knowing if it applies to you is the first step, and it isn't always obvious.

What an obligated subject is

An obligated subject is any person or company that, because of its activity, must implement measures to prevent money laundering and terrorism financing. Law 254 expanded and updated that framework in Panama, and in practice it requires three things:

• Knowing its client.
• Conducting due diligence.
• Reporting suspicious transactions.

Sectors that usually apply

Beyond the financial sector, the obligated-subject category reaches non-financial activities: lawyers, accountants, real estate firms, among others. If your company operates in one of those sectors, you're very likely within the scope of Law 254 even if nobody has ever told you.

How to confirm it

The only safe way to know if you're an obligated subject under Law 254 in Panama is to review your specific activity against the statute's criteria. It's a one-time review, but it determines obligations that, if ignored, accumulate into penalties.

Official source: Intendencia de Supervisión y Regulación de Sujetos No Financieros — Panama's Ministry of Economy and Finance.