For the international community living in the Isthmus, the term “Grey List” has long been a source of bureaucratic headaches. However, the first quarter of 2026 marks a definitive shift. Panama is currently executing its final roadmap to exit the remaining discriminatory lists, specifically targeting the European Union (EU) list of non-cooperative jurisdictions and maintaining the highest standards set by the Financial Action Task Force (FATF).
President José Raúl Mulino and Economy Minister Felipe Chapman have recently confirmed that Panama is on a definitive path to exit its last remaining discriminatory fiscal list by late 2026 or early 2027.
The “Cleanup” Strategy
The Panamanian government, through the Superintendency of Banks and the Ministry of Economy and Finance (MEF), has moved beyond mere promises. The current strategy involves the mass dissolution of inactive corporations and a rigorous update of the Unique Registry of Beneficial Owners (RUB). For expats, this means the “wild west” era of anonymous shell companies is officially over, replaced by a transparent, internationally validated system.
Why This Matters to the Expat Community
While this sounds like high-level macroeconomics, the “on-the-ground” benefits for foreign residents and investors are substantial:
- Streamlined International Transfers: One of the biggest pain points for expats is the “enhanced due diligence” performed by correspondent banks. As Panama exits these lists, the friction for USD and EUR wire transfers is expected to decrease, leading to fewer funds held and faster processing times.
- Banking Stability & New Fintech: Global financial institutions that previously hesitated to enter the Panamanian market due to “reputational risk” are now looking at the country with fresh eyes. This opens the door for more competitive mortgage rates and modern fintech solutions that cater to the digital nomad and expat demographic.
- Investment Confidence: A “clean” fiscal reputation attracts institutional capital. This shift is expected to stabilize the Panama real estate market, as European and North American funds feel more secure investing in a jurisdiction that meets all OECD and EU transparency criteria.
The Road Ahead
President Mulino’s administration has been vocal: Panama is no longer willing to be a “tax scapegoat.” By aligning with global transparency standards, the country is repositioning itself as the legitimate financial capital of Latin America.
The Bottom Line While the process is “tedious and technical”—as described by government officials—the 2026-2027 window represents the most credible effort in decades to normalize Panama’s standing in the global financial stage. For the savvy resident, this is a clear signal of long-term economic stability and a more integrated future with the global economy.