Panama

Compliance/Financial Considerations

risk@berkeley.edu or 642-5141:

  • Hire a local to work for you as an employee
  • Purchase or lease office or research space
  • Purchase or lease an automobile
  • Establish a long-term (over 90 days) or ongoing project
  • Conduct a clinical trial

U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS

Foreign activities may trigger many U.S. laws, including:

  • Import Controls
  • Export Controls
  • Tax Reporting
  • Foreign Bank Account Reporting
  • Country Embargoes and Targeted Sanctions
  • Foreign Corrupt Practices Act
  • Anti-Boycott Laws

Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730, also known as ISF 10+2.

Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here.  Go here for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Panama, consult the campus Research Administration Compliance Office at 642-0120.

Tax Reporting. The University and its employees may be taxed in foreign countries. The United States does not have a tax treaty with Panama. For more information about double taxation issues, contact the Controller’s Office at:

Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114). Those needing to complete the form should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance.

Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control (OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations webpage contains additional information on this topic.   

The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act.   If you need further clarification, contact the UC Berkeley Office of Legal Affairs at 642-7122.  Transparency International’s 2018 survey of perceived public sector corruption rated Panama at 37 out of 100 (93rd out of 180 countries reviewed, i.e.  corrupt).

Anti-Boycott Laws.  The U.S. Department of Commerce is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.

For other compliance-related issues, refer to UC’s International Compliance webpage.  

ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY

Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group by the Chancellor or the Chancellor’s designee. 

Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts.  Foreign affiliates or operations must submit to the Real Estate Services Office property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations.

Articles

The US State Department's page on PANAMA may be found HERE.

Personal Safety

AS OF NOVEMBER 16, AUTHORITIES IN PANAMA ARE MAINTAINING THE 2300-0500 DAILY CURFEW AND OTHER MEASURES NATIONWIDE; HOWEVER, STRICTER RESTRICTIONS ARE BEING ENFORCED IN PARTS OF VERAGUAS PROVINCE. THE VARIED MEASURES ARE IN RESPONSE TO CORONAVIRUS DISEASE (COVID-19) CASE NUMBERS AND LOCAL AUTHORITIES' CAPACITY TO HANDLE THE CASES. PANAMA'S BORDERS REOPENED TO ALL TRAVELERS, INCLUDING PANAMANIAN CITIZENS, RESIDENTS, AND NONRESIDENT FOREIGN NATIONALS, OCTOBER 12, FOLLOWING AN EXTENDED CLOSURE OF ALL PORTS OF ENTRY IN MARCH. ARRIVING PASSSENGERS WILL BE SUBJECT TO ENHANCED HEALTH SCREENINGS AT ALL AIRPORTS. ALL TRAVELERS MUST PRESENT A NEGATIVE PCR OR ANTIGEN TEST TAKEN WITHIN 48 HOURS BEFORE ARRIVAL, OR BE SUBJECT TO TESTING AT THE AIRPORT. IF THE TEST IS NEGATIVE, NO QUARANTINE WILL BE REQUIRED; HOWEVER, THE TRAVELER WILL BE REQUIRED TO QUARANTINE AT A GOVERNMENT APPROVED LOCATION IF THE TEST IS POSITIVE. A SECOND TEST WILL BE TAKEN AFTER SEVEN DAYS OF QUARANTINE. AUTHORITIES COULD REIMPOSE, EXTEND, FURTHER EASE, OR OTHERWISE AMEND ANY RESTRICTIONS WITH LITTLE TO NO NOTICE DEPENDING ON DISEASE ACTIVITY OVER THE COMING WEEKS. HIGHLY TARGETED LOCALIZED MEASURES COULD BE ENFORCED IN PROVINCES OR LOCAL COMMUNITIES WITH HIGHER DISEASE ACTIVITY.

Note: this page contains basic risk information. For more details, please contact the Risk Services Office at risk@berkeley.edu.

If you are traveling to Panama on University-related business, please sign up for the University’s travel insurance program by going here. For more information on the travel insurance program, please go here

Because everyone’s health is unique, we suggest seeking the advice of a medical professional before traveling internationally. Members of the campus community interested in protecting their health while abroad may schedule an appointment with the University Health Services International Travel Clinic

The quality of health care in Panama City is good, but elsewhere in Panama medical services are limited. Pharmacy quality is spotty. Travelers are encouraged to bring all medications they need or use the pharmacies available at private hospitals and clinics. Ambulance service is not available outside urban areas. Private ambulances tend to be superior to public ambulances (which can be reached by dialing 103), and some private ambulance services offer subscriptions to travelers. Two reputable ambulance services are:

  • Alerta S.A. (507-0-263-4522)
  • SEMM (507-0-366-0122)

Travelers should assume the drinking water in Panama is contaminated with untreated sewage, agricultural runoff, or industrial waste. To reduce the risk of gastrointestinal discomfort or illness, drink only bottled, boiled, or purified water. Travelers should use well-recognized brands of bottled water whenever possible.

Street vendors and other unregulated food distributors often have poor hygiene standards and should be avoided. Travelers should also avoid raw or undercooked meat dishes and unpasteurized dairy products, which frequently harbor bacterial and parasitic pathogens.

Travelers risk contracting a number of serious illnesses in Panama, including:

  • Malaria, transmitted by mosquito bites.
  • Dengue fever, yet another mosquito-borne disease. Highest incidence is from May to December. Areas of highest risk include Panama City, western Panama, and Kuna Yala.
  • Leishmaniasis, transmitted by sand flies. Highest incidence is from May to August and from November to December. Areas of highest risk are rural regions and densely-wooded forests.
  • Hantavirus, transmitted through rodent waste, in rural and semi-rural areas. The provinces of Cocle, Herrera, and Los Santos have reported the most cases.
  • Leptospirosis, usually transmitted via animal waste and often contracted after rain or flooding.

Theft is the main type of crime against travelers. It is common in both urban and rural tourist areas. Scam artists often try to con travelers by offering taxi rides or tours; accept such services only when obtained through trusted sources, and use credit cards with care. Travelers are vulnerable to armed robbery and other violent crimes at the hands of gang members and drug trafficking organizations. Avoid the Darien region near the Colombian border, as members of the Revolutionary Armed Forces of Colombia (FARC) sometimes operate in the area.

Strikes and protests periodically disrupt Panama City and rural highways. Avoid demonstrations, as violence may ensue if the police attempt to disperse protestors.

The Panamanian police have a reputation for corruption, but are generally responsive to reports of crime. Some speak English.

Earthquakes occur every few years in Panama. To optimize your preparation for an earthquake, review this guidance from the State of California

Legal/Political

Criminal Penalties: You are subject to local laws. If you violate local laws, even unknowingly, you may be expelled, arrested, or imprisoned.  Furthermore, some offenses are also prosecutable in the U.S., regardless of local law. 

Arrest Notification: If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy immediately.

If you break local laws in Panama, your U.S. passport will not help you avoid arrest or prosecution, and the Embassy cannot get you out of jail or prison.  Keep in mind, if you are arrested for an offense, tried and convicted, you must be sentenced before you can be transferred to the United States to complete your sentence in the United States. This process can last three or more years.  

Carry Identification: Anyone not bearing identification may be held and will be penalized by the Panamanian authorities. You should always carry your passport that contains the Panama entry stamp in case it is requested by Panamanian authorities.

Drugs: Penalties for possessing, using, or trafficking in illegal drugs in Panama are severe, and convicted offenders can expect long jail sentences and heavy fines.

LGBTI Travelers: Same sex marriages are not conducted nor recognized in Panama. Lesbian, gay, bisexual, transgender and intersex (LGBTI) individuals enjoy full legal rights in Panama. However, Panamanian law does not prohibit discrimination based on sexual orientation, and there is societal discrimination based on sexual orientation and gender identity.