Panama is officially off the EU blacklist — a big win for investors and global confidence in the country's financial system

gabrielillescas
Jul 15
2 min read

🚀 Panama Removed from EU High‑Risk List — What it Means & Why It Matters

Brussels, July 10, 2025 — In a landmark decision, the European Parliament approved the removal of Panama from the EU’s list of high‑risk jurisdictions for anti–money laundering and tax transparency on July 9, 2025. This shift follows Panama’s earlier delisting by the Financial Action Task Force (FATF) in October 2023, signaling a consolidation of confidence in the country’s regulatory improvements.

✅What Has Changed?

EU Parliament Vote - On July 9, 2025, members of the European Parliament endorsed the European Commission’s recommendation, citing concrete progress made by Panama in strengthening anti–money laundering practices and transparency of beneficial ownership.
Legislative Reforms - Since early 2024, Panama has enacted key reforms, including Decree 512 (targeting maritime deregistration of ghost ships) and Law 23 of 2025, which implemented a centralized registry and enhanced reporting mechanisms for financial activity.
International Alignment - The EU decision builds on FATF’s October 27, 2023 vote to remove Panama from its "grey list" after the country successfully passed multiple compliance evaluations.

🌟 Why It Matters

Lower Due Diligence Costs - European banks and institutions no longer need to apply additional scrutiny to Panamanian transactions, reducing compliance time and cost.
Boost in Investor Confidence - With fewer restrictions, Panama is positioned to attract greater foreign direct investment (FDI), particularly from EU-based investors who had been wary due to the previous blacklisting.
Easier Access to Credit and Financial Services - Panamanian financial institutions and real estate developers will likely benefit from smoother access to European capital and partnerships.
Improved Diplomatic Standing - The Panamanian government has earned renewed credibility with the international financial community, improving its reputation and soft power abroad.

🏠 What This Means for Real Estate & Business

Faster International Closings - With fewer regulatory flags, real estate transactions involving European buyers and banks can move more efficiently.
Greater Appeal to Institutional Buyers - Funds, family offices, and high-net-worth individuals are more likely to consider Panama now that it has been formally cleared from high-risk status.
Mortgage and Financing Opportunities - Local banks may offer more competitive lending options for international clients due to improved relationships with EU institutions.

📅 Timeline Snapshot

March–October 2024: Panama enacts a series of financial reforms
July 9, 2025: The European Parliament votes to remove Panama from the EU’s high-risk list

🧭 The Bottom Line

Panama’s removal from the EU blacklist isn’t just symbolic — it’s a strategic upgrade to its global financial reputation. For professionals in real estate, finance, and international business, this represents a turning point: faster transactions, lower friction, and broader access to global capital. As regulatory momentum continues, Panama stands poised for increased growth, investment, and international integration.