The principle of reverse solicitation allows financial services companies to offer their services to clients in foreign jurisdictions without requiring a local license or presence, as long as the client initiates the contact. This is especially relevant for cross-border financial transactions conducted via online platforms, where regulations vary between countries.
In Panama, the legal framework for complex financial products is primarily outlined in Law Decree No. 1 of 1999 and further amendments, including Law No. 67 of 2011. According to Article 58 of this framework, securities traded through correspondent relationships are not considered to be offered in Panama, provided the firm does not promote these securities locally and the transactions are completed outside Panama.
Currently, there are no restrictions in Panama on foreign companies accepting Panamanian clients, as long as the engagement is initiated by the client and no promotional activities take place in Panama. This allows foreign companies to serve Panamanian residents under the principle of reverse solicitation without violating local laws.
The principle of reverse solicitation allows financial services companies to offer their services to clients in foreign jurisdictions without requiring a local license or presence, as long as the client initiates the contact. This is especially relevant for cross-border financial transactions conducted via online platforms, where regulations vary between countries. In Panama, the legal framework […]
Panama joins the digital era with the Remote Worker Visa, allowing digital nomads to temporarily reside in the country (9 months, with the possibility of extension) without altering their employment status abroad. Applicants must demonstrate an employment relationship with an entity outside of Panama and that their work activities are primarily conducted from abroad or […]
The subcategory of Permanent Resident as Qualified Investor has been created in the Republic of Panama within the immigration category of Permanent Resident for Economic Reasons. This subcategory was created by Executive Decree No. 722 of October 15, 2020 promulgated through Official Digital Gazette No. 29136 of October 16, 2020, the date of its entry […]
Through Law 159 of August 31, 2020, the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services Related to Manufacturing (EMMA), was created. Its purpose is to attract and promote investments in production processes and the generation of jobs and technology transfer, as well as to make Panama more […]
