(English) Panama´s Executive Decree 468: Responsibilities and Obligations of the Corporation´s Resident Agent

EXECUTIVE DECREE 468

Of September 19, 1994

Official Gazette No. 22.630 of September 26, 1994

By which obligations are assigned and the responsibilities are established for the registered or resident agent of corporations

 WHEREAS:

 The illegal traffic of drugs is a great menace to the health and well being of humans and undermines the ethical, economic, cultural and political basis of society;

 The illegal traffic of drugs generates significant financial profits and great fortunes that may allow transnational criminal organizations to invade, contaminate and corrupt the legal structures of public administration, commercial and financial activities, and society at all its levels;

 There is a higher interest of the Panamanian society to fight illegal drugs traffic and money laundering derived from this criminal activity which affects humanity in its entirety;

 To such end, the Republic of Panama sanctioned Law 23 of December 30, 1986 on drug related crimes and the economic result from such illegal traffic;

 Afterwards and with the same purpose, the Republic of Panama negotiated with the United States of America the Mutual Legal Assistance Treaty, approved by the Legislative Assembly by Law 20 of July 22, 1991; has negotiated similar treaties with the United Kingdom, Colombia, Canada and Central America, and lately, it ratified and approved by Law 20 of December 7, 1993, the United Nations Convention against illegal traffic of narcotics and psychotropic substances, also known as the 1988 Vienna Convention;

 The Republic of Panama plays a significant role in the world’s economy due to the great development of its international service economy;

 The banking center, the Colon Free Zone and the Corporations represent the most important sectors of the service economy;

 The Corporation law was established by Law 32 of 1927 and has become since then, an essential vehicle of international economic relations;

It is necessary to take steps to protect the good name of Panamanian corporations through the creation of mechanisms that will discourage their use to commit drug related crimes as well as for the laundering of money derived from them.

DECREES:

ARTICLE 1.  It is the obligation of every lawyer or law firm acting as Resident Agent of a Panamanian corporation, to know its client and keep sufficient information to identify it before the competent authority when so required.

ARTICLE 2.  This information will be provided only upon request of an officer of the Department of Justice or Judicial Branch with jurisdiction to know about drug related crimes or money laundering resulting from such criminal activity, because of proceedings already started in the Republic of Panama or under the Mutual Legal Assistance Treaties.

ARTICLE 3.  Provision of the information referred to in the article above by the Resident Agent will not be deemed a violation of the professional secret by the lawyer against its client, or a breach of professional ethics for the purpose of article 170 of the Penal Code as it involves a higher interest of the Republic of Panama.

ARTICLE 4.  The lawyer or members of a law firm who without justified reason refuse to provide the information requested will incur in contempt.

ARTICLE 5.  The National Government through the Ministry of Government and Justice, will encourage professional lawyer’s organizations to contemplate in the Professional Code of Ethics of lawyers, the subject that causes this Decree in accordance with the spirit of the laws mentioned in the whereas clauses of the same and in the provisions set forth in their resolutive parts.

ARTICLE 6.  This Decree will enter into force from the moment of its promulgation in the Official Gazette.