	Lex Mundi Global Anti-Corruption Compliance Guide
	Panama
	(Latin America/Caribbean) Firm Arias, Fábrega & Fábrega Contributors Ricardo M. Arango Updated 20 Mar 2020
What is the key anti-bribery and corruption legislation in your jurisdiction?	Law No. 42 of 1998 incorporated the Inter-American Convention against Corruption signed in Caracas, Venezuela on March 29, 1996. Later, by means of Law No. 15 of May 10, 2005, the United Nations Convention Against Corruption, adopted in New York on October 31, 2005, was also incorporated into the Panamanian legal system. Both norms have established international obligations that the country is incorporating in its internal regulations. As to the development of local laws, Panama has the following regulations: Law No. 6 of January 22, 2002, which dictates rules for the transparency of public management, establishes habeas data and other provisions; Law No. 39 of 2001, which modifies and adds provisions to the Criminal Code and the Judicial Code. It dictates norms to prevent corruption, especially in connection with crimes against the public administration and crimes of corruption by public servants; Procedural Criminal Code; Law No. 33 of April 25, 2013, which creates the National Authority for Transparency and Access to Information; Law No. 38 of 2000 on administrative procedure, which establishes the possibility of filing administrative complaints; Law No. 7 of February 5, 1997, which creates the Ombudsman's Office, which allows the filing of complaints against public servants; Executive Decree No. 246 of 2004, which creates the Code of Uniform Ethics for Public Servants; and Executive Decree No. 209 of 2016, which creates the Inter-institutional Anti-corruption Group.
Has there been a specific anti-bribery and corruption law enacted in your jurisdiction in the last ten years?	Law No. 33 of April 25, 2013, created the National Authority for Transparency and Access to Information. The law establishes a public institution, decentralized from the state, with fully functional and administrative autonomy. In addition, Executive Decree No. 209 of 2016 creates the Inter-institutional Anti-corruption Group.
Is a bribe payment to domestic government officials prohibited by the legislation?	Yes, the Criminal Code, articles 345-347, prohibit a bribe payment to domestic government officials.
Is a bribe payment to foreign government officials prohibited by the legislation?	Yes, the Criminal Code, articles 350 and 354 prohibit bribe payments to foreign government officials.
Is requesting or accepting a bribe prohibited by the legislation?	Yes the Criminal Code, articles 345, 346, 347, 350 and 354 prohibit requesting or accepting a bribe.
Who is subject to the legislation?	The legislation applies to both government officials and private individuals as well as corporate entities.
Is there criminal liability for corporate entities who have either paid or accepted a bribe payment?	Yes, there is criminal liability for corporate entities that have made a bribe payment.
What is the penalty for individuals violating the law?	A person who, under any modality, offers, promises or delivers to a public servant a donation, promise, money or any benefit or advantage to perform, delay or omit any act proper of his/her position or employment or in violation of his/her obligations, will be punished with imprisonment ranging from three to six years. Criminal Code, article 347. A public servant engaged in passive bribery will be punished with imprisonment from two to four years. Criminal Code, article 345. Bribery of a foreign official or employee of an international organization is punishable by a term of imprisonment ranging from five to eight years. Criminal Code, article 350.
Assuming corporate entities are liable for violating the legislation, what is the penalty for corporate entities violating the law?	A corporate entity that is used or created to commit a crime (provided that it benefited from it) will be subject to the following penalties: Cancellation or suspension of the license or registration for a term not exceeding five years; A fine of no less than five thousand balboas (B/. 5,000.00) but not exceeding double the injury or benefit obtained; Total or partial loss of tax benefits; Inability to contract with the state, directly or indirectly, for a term not exceeding five years, which shall be imposed together with any of the foregoing; and Dissolution of the corporate entity.
Assuming corporate entities are liable for violating the legislation, does having a compliance program designed to prevent bribery constitute a defense?	No, having a compliance program in place does not constitute a defense.
Assuming corporate entities are liable for violating the anticorruption law, is it possible for a corporate entity to reach a deferred prosecution agreement or leniency agreement with the enforcement authorities?	There is no explicit mention of deferred prosecution agreements in Panamanian legislation. However, it is possible for a cooperating witness who is the subject of a criminal investigation to reach a leniency agreement (acuerdos de pena o colaboración) pursuant to Law No. 4 of 2017. The law establishes the possibility of a sentence and/or penalty reduction for the accused. The prosecutor (Attorney General’s Office) and the defendant may enter into such agreement with the purpose of having the cooperating witness provide evidence against other offenders, to prevent the offense from continuing to be carried out, and to preclude accomplices from concealing evidence or committing new crimes. Please note that this procedure only applies to criminal proceedings for crimes committed prior to September 2, 2016.

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What is the key anti-bribery and corruption legislation in your jurisdiction?

Law No. 42 of 1998 incorporated the Inter-American Convention against Corruption signed in Caracas, Venezuela on March 29, 1996. Later, by means of Law No. 15 of May 10, 2005, the United Nations Convention Against Corruption, adopted in New York on October 31, 2005, was also incorporated into the Panamanian legal system. Both norms have established international obligations that the country is incorporating in its internal regulations. As to the development of local laws, Panama has the following regulations:

Law No. 6 of January 22, 2002, which dictates rules for the transparency of public management, establishes habeas data and other provisions;
Law No. 39 of 2001, which modifies and adds provisions to the Criminal Code and the Judicial Code. It dictates norms to prevent corruption, especially in connection with crimes against the public administration and crimes of corruption by public servants;
Procedural Criminal Code;
Law No. 33 of April 25, 2013, which creates the National Authority for Transparency and Access to Information;
Law No. 38 of 2000 on administrative procedure, which establishes the possibility of filing administrative complaints;
Law No. 7 of February 5, 1997, which creates the Ombudsman's Office, which allows the filing of complaints against public servants;
Executive Decree No. 246 of 2004, which creates the Code of Uniform Ethics for Public Servants; and
Executive Decree No. 209 of 2016, which creates the Inter-institutional Anti-corruption Group.

Has there been a specific anti-bribery and corruption law enacted in your jurisdiction in the last ten years?

Law No. 33 of April 25, 2013, created the National Authority for Transparency and Access to Information. The law establishes a public institution, decentralized from the state, with fully functional and administrative autonomy.

In addition, Executive Decree No. 209 of 2016 creates the Inter-institutional Anti-corruption Group.

Is a bribe payment to domestic government officials prohibited by the legislation?

Yes, the Criminal Code, articles 345-347, prohibit a bribe payment to domestic government officials.

Is a bribe payment to foreign government officials prohibited by the legislation?

Yes, the Criminal Code, articles 350 and 354 prohibit bribe payments to foreign government officials.

Is requesting or accepting a bribe prohibited by the legislation?

Yes the Criminal Code, articles 345, 346, 347, 350 and 354 prohibit requesting or accepting a bribe.

Who is subject to the legislation?

The legislation applies to both government officials and private individuals as well as corporate entities.

Is there criminal liability for corporate entities who have either paid or accepted a bribe payment?

Yes, there is criminal liability for corporate entities that have made a bribe payment.

What is the penalty for individuals violating the law?

A person who, under any modality, offers, promises or delivers to a public servant a donation, promise, money or any benefit or advantage to perform, delay or omit any act proper of his/her position or employment or in violation of his/her obligations, will be punished with imprisonment ranging from three to six years. Criminal Code, article 347.

A public servant engaged in passive bribery will be punished with imprisonment from two to four years. Criminal Code, article 345.

Bribery of a foreign official or employee of an international organization is punishable by a term of imprisonment ranging from five to eight years. Criminal Code, article 350.

Assuming corporate entities are liable for violating the legislation, what is the penalty for corporate entities violating the law?

A corporate entity that is used or created to commit a crime (provided that it benefited from it) will be subject to the following penalties:

Cancellation or suspension of the license or registration for a term not exceeding five years;
A fine of no less than five thousand balboas (B/. 5,000.00) but not exceeding double the injury or benefit obtained;
Total or partial loss of tax benefits;
Inability to contract with the state, directly or indirectly, for a term not exceeding five years, which shall be imposed together with any of the foregoing; and
Dissolution of the corporate entity.

Assuming corporate entities are liable for violating the legislation, does having a compliance program designed to prevent bribery constitute a defense?

No, having a compliance program in place does not constitute a defense.

Assuming corporate entities are liable for violating the anticorruption law, is it possible for a corporate entity to reach a deferred prosecution agreement or leniency agreement with the enforcement authorities?

There is no explicit mention of deferred prosecution agreements in Panamanian legislation. However, it is possible for a cooperating witness who is the subject of a criminal investigation to reach a leniency agreement (acuerdos de pena o colaboración) pursuant to Law No. 4 of 2017. The law establishes the possibility of a sentence and/or penalty reduction for the accused. The prosecutor (Attorney General’s Office) and the defendant may enter into such agreement with the purpose of having the cooperating witness provide evidence against other offenders, to prevent the offense from continuing to be carried out, and to preclude accomplices from concealing evidence or committing new crimes. Please note that this procedure only applies to criminal proceedings for crimes committed prior to September 2, 2016.

Lex Mundi Global Anti-Corruption Compliance Guide

Panama

Lex Mundi Global Anti-Corruption Compliance Guide

Panama

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