Draft bill 456.

Summary.

The draft bill regulates public solidarity donation campaigns and the handling of the funds they raise. It would apply to individuals who solicit or administer monetary donations from the general public within Panama or through accessible digital channels for medical, humanitarian or social purposes. Its application would follow principles of transparency, good faith, social responsibility, accountability and protection of public trust. It defines a fundraising campaign, solidarity donation, beneficiary, fund administrator, Certified Solidarity Account, solidarity deception and digital platform. It also defines the National Solidarity Donation Fundraising Registry (Registro Nacional de Recaudación de Donaciones Solidarias) as the system responsible for authorizing, supervising and overseeing campaigns.

The bill creates that Registry under the Ministry of Social Development (Ministerio de Desarrollo Social). Each campaign would have to be registered before donations are requested, and fundraising without Registry authorization would be prohibited. The Registry would issue an Authorized Solidarity Campaign Certificate bearing a unique number and QR code, both of which would have to appear in all campaign advertising and promotional messages. The code would provide access to official information on the campaign’s authenticity, status and purpose. The certificate would have to be delivered within five business days after a complete application is submitted. A public digital platform would allow people to check authorized campaigns, their purposes and their implementation status.

An applicant seeking donations would have to provide identification for the applicant and beneficiary; an original medical diagnosis when applicable; the treating physician’s signature, stamp and professional credentials; quotations supporting the amount requested; the beneficiary’s or legal representative’s authorization; and the Certified Solidarity Account details. Through the Registry, the Ministry of Social Development could verify the documents, request additional information and coordinate with health centers, qualified professionals and other competent authorities. Requests for public donations without compliance with these requirements would be prohibited.

All proceeds would have to be deposited in a bank account used exclusively for the authorized campaign. Once the declared fundraising goal was reached, the account and campaign would have to close. The account could be held in the beneficiary’s or legal representative’s name. Social activities collecting cash, including bingo games, food sales and raffles, would require prior registration using a form supplied by the Ministry of Social Development. The beneficiary or legal representative would have to report each activity’s date and total amount raised for entry on the Registry’s digital platform. Funds could be used only for the announced purpose; the administrator would submit periodic reports and retain expense receipts.

The Registry could request medical, financial and social reports, verify hospitals and physicians, suspend irregular campaigns and refer cases to the Public Prosecutor’s Office (Ministerio Público). Violations could result in fines, campaign suspension or cancellation of registration. The bill adds Article 221-A to the Criminal Code of the Republic of Panama (Código Penal de la República de Panamá), establishing fraud through solidarity fundraising punishable by five to ten years’ imprisonment. It provides for six to twelve years’ imprisonment in the listed aggravated circumstances, including where the amount exceeds ten thousand balboas (B/. 10,000), and requires restitution of all money obtained. Financial institutions and digital platforms could request the registration number before enabling campaigns. The Executive Branch would issue implementing regulations within six months after promulgation, and the law would take effect upon promulgation in the Official Gazette.

The provisions concern the Ministry of Social Development, the National Solidarity Donation Fundraising Registry and the Public Prosecutor’s Office in carrying out their assigned functions. They could also concern or affect beneficiaries, donors, campaign organizers, health professionals and centers, financial institutions and digital platforms.