Draft bill 410.

Summary.

The draft bill establishes a framework in Panama for investigating and prosecuting offenses against the Public Administration, money laundering arising from those offenses, and other criminal conduct harming the State. It defines seized and forfeited property, complex cases, freedom of proof, regulated entities, and the distinction between restitution of State property and recovery of proceeds of crime. It requires its provisions to be interpreted in accordance with the Constitution, treaties ratified by Panama, and the Criminal Procedure Code. Investigations may begin on the authorities’ own initiative, following a report, or following a formal complaint, independently of other forms of liability. Affected public institutions must report the offenses, file formal complaints, preserve documentation, and respond to requests from the Public Prosecution Service (Ministerio Público), understood for purposes of this law to mean the relevant officials of the Office of the Attorney General (Procuraduría General de la Nación).

Prosecutors could gather evidence, investigate assets, and use expert reports and audits by public servants, public universities, police forces, or the Institute of Legal Medicine and Forensic Sciences (Instituto de Medicina Legal y Ciencias Forenses). Those actions would not depend on a prior audit or endorsement by the Office of the Comptroller General of the Republic (Contraloría General de la República). The Public Prosecution Service could provisionally seize property linked to the facts, subject to judicial review within the following 10 days. Prosecutors could also request designation as a complex case, with a reasoned judicial decision on extending deadlines, and keep investigative acts confidential for 30 consecutive days, extendable for the same period, subject to judicial review at the defense’s request.

The text regulates judicially authorized interception of communications, seizure of private correspondence, and undercover operations, including participation by private individuals. It establishes conditions governing the liability and protected identity of undercover agents and provides for physical or digital surveillance, domestic and international controlled deliveries, substitution of shipments, controlled purchases, and seizure of data. The techniques would be subject to a reasoned prosecutorial order and prior or subsequent judicial review, as applicable. Information obtained could be introduced into another related proceeding with subsequent judicial authorization. Communications providers would have to cooperate confidentially; other persons receiving requests would have to respond within the prescribed time limits. Unjustified noncompliance could result in coercive fines ranging from 1,000 balboas (B/. 1,000.00) to 50,000 balboas (B/. 50,000.00). The draft bill also establishes conditions for using documents obtained from official portals as evidence.

The draft bill provides for plea agreements with natural and legal persons. For legal persons, it provides for fines, restitution or recovery of assets, compliance programs, cooperation, and reparation, with safeguards and possible suspension of proceedings. It regulates effective cooperation by persons connected to the investigation: they must acknowledge their participation, surrender property or its equivalent, cooperate in investigative steps, and undertake to testify. Potential benefits include reduction or substitution of sentence, suspension of proceedings or sentence enforcement, and a decision not to bring or pursue charges, under an agreement subject to judicial approval. It provides protective measures for persons who report offenses, witnesses, cooperating persons, and, depending on the risk, their family members; these include identity protection, assistance, security, and protection against dismissal. Retaliation could be punished by a fine ranging from 1,000 balboas (B/. 1,000.00) to 25,000 balboas (B/. 25,000.00).

For international cooperation, it allows information to be transmitted spontaneously, joint investigation teams to be formed, and information obtained by their members to be exchanged directly. It provides for locating and securing assets abroad, requesting cooperation after a final judgment, and agreeing on their distribution as appropriate. Restituted State property would return to the affected entity; forfeited property that did not belong to the State would enter the National Treasury (Tesoro Nacional). Of the latter, 30% would be allocated to entities involved in the investigation and adjudication, under traceability mechanisms of the Ministry of Economy and Finance (Ministerio de Economía y Finanzas).

Finally, it amends the Criminal Procedure Code (Código Procesal Penal) concerning limitation periods, suspension, disqualification, and the appearance or replacement of expert witnesses; it adds restrictions preventing former judges, justices, prosecutors, and municipal prosecutors from representing parties in cases they handled. It amends the Criminal Code (Código Penal) concerning community service, Law 59 of July 29, 1999 concerning investigations into unjustified enrichment, and Law 23 of 2015 concerning the updating and retention of due diligence records. The provisions concern the Judicial Branch (Órgano Judicial), the Supreme Court of Justice (Corte Suprema de Justicia), the Prison Technical Board (Junta Técnica Penitenciaria), and the Ministry of Security (Ministerio de Seguridad), as well as public institutions, communications providers, insurers, banks, and supervised financial, nonfinancial, and professional entities. The draft bill provides that it would enter into force upon publication in the Official Gazette (Gaceta Oficial).