Alfaro Ferrer & Ramírez

New laws in key offshore jurisdictions came into force at the beginning of 2019 which require entities engaging in specific types of business to demonstrate adequate economic substance in that jurisdiction. Failure to comply with substance requirements could lead to grave consequences, such as incurring significant fines or being struck off by local registries.

The Panamanian government recently gave the green light to the establishment and operation of BPO's Panama Free Zone. The new project constitutes not only the first digital free trade zone in the Republic of Panama, but it is also being promoted as the first of its kind in the Latin American region.

Through the enactment of Agreement no. 4-2012, the Superintendence of Insurance and Reinsurance of Panama (SSRP) regulates the provision of reinsurance and brokerage services by foreign entities to local insurance and reinsurance companies authorised to operate in Panama.