Panama exits financial crime watchdog FATF's gray list

By Elida Moreno and Valentine Hilaire

PANAMA CITY (Reuters) -Panama has been removed from the gray list of financial crime watchdog FATF, a register which includes countries deemed to be doing too little to combat money laundering, according to a government statement on Friday.

The Central American country's first stint on the Financial Action Task Force's (FATF) so-called gray list, which can impact a country's investment ratings and reputation, was from 2014 to 2016.

It was added back again in 2019.

Panamanian Economy and Finance Minister Hector Alexander told Reuters on Friday that systemic changes made by the government in the financial sector are solid enough for the country not to rejoin the list in the future.

Deputy Financial Minister Jorge Almengor had told Reuters in June he expected Panama to be excluded from the list this month.

Exiting the list will unlock international investments to the country, especially from Europe, Alexander added, without disclosing a specific estimate for upcoming transactions.

"Panama is a small country, and as a small country we have to grow outwards," Alexander said.

Panamanian President Laurentino Cortizo celebrated the decision on social media platform X, formerly Twitter.

(Reporting by Elida Moreno and Valentine Hilaire; Editing by Sarah Morland and Sandra Maler)