Bill 228.

Summary.

The bill seeks to protect consumers and the financial system by criminalizing unauthorized financial intermediation, limiting excessive interest charges, and addressing abusive collection of time-barred debts. It would amend Article 248 of the Criminal Code (Código Penal) and add Articles 248-A, 248-B, and 248-C.

Under the proposed wording of Article 248, anyone who takes funds from the public on a large-scale and habitual basis, or grants loans, credit, or other forms of financing without authorization from the competent authority, would face eight to fifteen years of imprisonment. The penalty would increase by one third if the conduct involves usurious interest rates or terms manifestly burdensome to the debtor. A person who poses as a legally established financial institution or uses false documents to appear officially authorized would face ten to twenty years of imprisonment.

Proposed Article 248-A excludes occasional loans between private parties, made without habitual activity or a profit motive, from the offense of unlawful taking of public funds. It also excludes transactions by entities authorized and regulated by the Superintendency of Banks of Panama (Superintendencia de Bancos de Panamá), the Securities Market Superintendency (Superintendencia del Mercado de Valores), and the Insurance and Reinsurance Superintendency (Superintendencia de Seguros y Reaseguros), as well as cooperatives, mutual companies, savings and loan associations, and other financial entities recognized by law. The provision adds, for noncompliance, imprisonment of 3 to 6 years, a fine equal to twice the amount unlawfully taken, and a ban on financial activities throughout the national territory for a period of no less than 5 years, counted from the principal sentence.

Proposed Article 248-B would punish, with five to ten years of imprisonment and a fine of up to three times the amount improperly collected or claimed, persons who impose usurious interest on financing or credit without authorization from the competent regulator, or demand payment of time-barred debts through intimidation, harassment, or other unlawful means. The same penalties would apply to legal representatives, administrators, and directors who knowingly and intentionally allow, order, or facilitate those practices. Usurious interest is defined by reference to the maximum rate permitted by the Superintendency of Banks of Panama or another competent authority.

The text also proposes Article 248-C for loans granted without authorization, outside the regulated financial system, and on abusive terms. It provides imprisonment of three (3) to six (6) years and a fine of up to the amount illegally lent; five (5) to ten (10) years when the interest rate exceeds the legal maximum; and eight (8) to twelve (12) years if threats, violence, or coercion are used to collect the loan. Money obtained through the activity would be confiscated and, where possible, returned to victims. The final amendment clause identifies these changes to the Criminal Code of the Republic of Panama (República Panamá), and the bill would take effect the day after its promulgation. Its provisions could concern the named supervisory authorities, financial entities, lenders, borrowers, and consumers.