Bearer Share Custody System

The bearer share immobilization system was introduced in Panama by means of Law 47 of 6th August 2013 and was substantially amended by Law 18 of 23rd April 2015. Luis Quiel of Mossack Fonseca shall review here the most important aspects of the custody system, as modified by the most recent amendments.

Entry into Force is Moved Forward

Companies that were formed before 4th May 2015 have up to 31st December 2015 to delete from their articles of incorporation the possibility of issuing bearer shares or to deposit the bearer share certificates with an authorized custodian. The latter would require, either amending the articles of incorporation to expressly allow bearer shares under the custody system, or having such system approved in a board of directors minutes registered at the Public Registry.

If any company does not formally approve (before 31st December 2015) a decision to allow the immobilization of bearer share certificates, the bearer share certificates that it has issued shall be null and void by full right.

The deadline of 31st December 2015 applies only to companies formed before 4th May 2015. For bearer shares issued on or after 4th May 2015, the term expired on 4th August 2015.

Legal Consequences of Lack of Action

Articles of incorporation of companies that envisage the issuance of bearer shares and that have not been amended to provide for immobilization with authorized custodians (save if the decision was adopted through a board resolution duly registered at the Public Registry) will be deemed to have been amended by operation of law as of 1st January 2016. This will cause two important consequences for such companies: 1) bearer shares that are outstanding shall be irrevocably null and void, and 2) the company may not issue new bearer shares.

Immobilization or Custody System

To benefit from the bearer share custody system, certain requirements need to be complied with as follows:

1. Amendment of the articles of incorporation or registration of the decision of the corporation’s board of directors before 31st December 2015, so as to envisage bearer shares in custody according to the system created by Law 47 of 2013 and Law 18 of 2015.

2. Deposit of the bearer share certificates with an authorized custodian.

3. The authorized custodian shall require a sworn statement from the shareholder that includes information allowing due identification of the owner of the bearer shares and the corporation’s resident agent, including contact details.

The law provides for two kinds of authorized custodians: 1) local authorized custodians, and 2) foreign authorized custodians. The former may be banks holding a general license and trust companies authorized by the Panama Bank Superintendence (SBP―its initials in Spanish); brokerage houses and securities clearing houses authorized by the Securities Market Superintendence (SMV―its initials in Spanish); and attorneys at law certified as such by the Supreme Court of Justice.

Banks, trust companies, and financial intermediaries may be foreign authorized custodians if they hold a license for practicing their activities as set forth in jurisdictions that are members of the Financial Action Task Force (FATF) on Money Laundering or are associated members that are registered with the SBP on a special register that the latter keeps to such end.

Rights over Certificates in Custody

The ownership of shares in custody may be transferred without need for the physical delivery of the certificates, provided that the owner advises the custodian that he/she has made the transfer and that the acquirer submits a sworn statement to the custodian that includes the required information (name and identification data, as well as contact data).

The law provides, likewise, for an interesting pledge system that allows the creation of such encumbrance on bearer shares in custody, by the owner merely giving notice to the authorized custodian whereby he/she advises the pledging of the shares as well as the lienholder’s full name, physical address, telephone number, and email address.

Lastly, a special inheritance disposition system has been created for bearer shares that allow owners to dispose mortis cause of their shares, without need for such shares to be the object of a probate process for their transfer upon the grantor’s death.

Conclusion

As Luis Quiel of Mossack Fonseca has outlined, as of 1st January 2016, bearer shares that are not regulated by the custody system in accordance with Law 47 of 2013, as amended by Law 18 of 2015, shall be irrevocably null and void by operation of law. It is important to take provisions in time and to make corporate decisions in accordance with the formalities set by the law. Otherwise, the legal and financial consequences of the annulment of the rights inherent to such bearer shares may be quite costly.

Asociación Internacional de Marcas realizará en Panamá conferencia anual de liderazgo

La Asociación Internacional de Marcas (INTA, por sus siglas en inglés) anunció que la Conferencia Anual de Liderazgo para Latinoamérica, será llevada a cabo del 17 al 20 de Noviembre, en el Hotel Hard Rock, en la ciudad de Panamá.

De acuerdo con sus organizadores, será el mayor evento organizado por INTA en Latinoamérica hasta el momento, y uno de los más importantes debido a que se han convocado las marcas más relevantes a nivel nacional e internacional.

Dentro de dicho encuentro, se conformarán diversos comités de trabajo, dentro de los cuales Mossack Fonseca, reconocida por su vanguardia y calidad profesional, ha sido aceptada para colaborar participando en dos mesas de trabajo, lo cual ratifica el profesionalismo y compromiso que caracteriza al equipo legal y administrativo de la empresa.

Sanz de Acedo, uno de los miembros principales de INTA, explicó que para realizar este evento se ha escogido a Panamá debido a que es uno de los países con más alto crecimiento empresarial y económico en Latinoamérica.

INTA es una organización que busca defender las marcas comerciales y la propiedad intelectual teniendo en cuenta siempre la seguridad y tranquilidad del propietario de las marcas, para de esa manera lograr un comercio justo.

El sistema de tratamiento de aguas residuales del Centro Educación Básica General El Valle (CEBG), será una de las acciones que llevará a ejecución, la empresa Mossack Fonseca, después de suscribir una carta de intención con autoridades del Ministerio de Educación, como parte del Programa Mi Escuela Primero.

La rúbrica de la carta de intención estuvo a cargo del Viceministro académico de Educación, Carlos Staff y el Director Ejecutivo de Mossack Fonseca, Rubén Hernández, al cual además concurrieron personalidades como: la coordinadora de Responsabilidad Social Corporativa de la Empresa, Susana Fonseca y la líder y miembro del Programa Mi Escuela Primero, Ayleen Varela.

Durante la firma de la carta de intención, el Viceministro de Educación manifestó que se sentía complacido con el apoyo recibido por esta empresa panameña en una escuela de Coclé, beneficiando así a la población estudiantil de aquellas regiones apartadas del país.

Con este tipo de actividades el programa Mi Escuela Primero busca mejorar las condiciones de los centros educativos oficiales del país y por ende se verán beneficiados los estudiantes a recibir sus clases en escuelas dignas, subrayó el Viceministro Staff.

Mossack Fonseca & Co. - Perfil de oficina

Mientras tanto, el Gerente General de Mossack Fonseca, Rubén Hernández, resaltó que es para la empresa un privilegio unirse a este importante proyecto desarrollado por el Gobierno Nacional y el MEDUCA, de la mano de importantes empresas que fomentan como valor fundamental la responsabilidad social empresarial y en pro de la educación.

Cabe resaltar, que Mossack Fonseca, se compromete con este proyecto, porque causará un gran impacto y mejora social; pensamos que los niños de hoy harán crecer aún más al país y por ello debemos ofrecerle una educación digna, especificó Susana Fonseca, coordinadora de Responsabilidad Social Corporativa. Leer aquí.

La comprador entrega al agente Escrow el dinero para la compra del bien y este profesional se convierte en protector de sus intereses

Si como visitante a Panamá, está entre sus planes adquirir un bien inmueble y le invaden las dudas sobre quién cuide que la transacción cumpla eficientemente con todo el proceso de compra venta, lo más probable es que necesite los servicios de un abogado con capacidad de actuar como un agente de servicios Escrow.

Aunque suene curioso este término Escrow, su génesis proviene del francés antiguo y aplicaba a ‘escroue', rollo o pergamino, que podía ser de bonos o escritos para alguna transacción comercial.

En la prestación de este importante servicio, la parte interesada entrega al agente Escrow el dinero para transacción que se desarrollará por la compra del bien y éste profesional, con capacidades y conocimientos legales y de bienes raíces, se convierte en un garante que custodia, protege y procura que el agente cumpla con todas las obligaciones contraídas en la transacción que vaya a realizar el inversionista.

Aunque este tipo de servicios se centraba primordialmente en países anglosajones, en la actualidad el ritmo económico y de desarrollo que tiene el país, permiten que el Escrow se extienda hacia diversos y complejos mercados, lo que requiere de un nivel participativo a través firmas legales responsables con vasta experiencia en este campo.

En Panamá, estos servicios se brindan de manera óptima, cumpliendo con las condiciones y tiempos establecidos en los contratos Escrow, a través de profesionales de firmas con sólido prestigio como Mossack Fonseca, preparados para ofrecer así adecuadas soluciones para que clientes internacionales puedan invertir con seguridad en terrenos y propiedades en Panamá.

El servicio Escrow es sin lugar a dudas un importante vehículo que depende de una relación contractual previa, como cuando se realizan contratos accesorios, con la modalidad de que el agente es el profesional quien puede ayudar a facilitar los pagos relacionados con este tipo de transacciones inmobiliarias.

A veces, cuando deseamos conseguir nuevas propiedades, el tiempo, los medios y el conocimiento jurídico se limitan a tal punto que los agentes Escrow logran convertirse en facilitadores para garantizar que todas las operaciones vinculadas a esta adquisición tengan una figura de confianza que lleven a buen puerto la intención de invertir en el patrimonio.

Así, la importancia del servicio radica en el hecho de estar a miles de kilómetros de alcance para concretar una buena transacción comercial, apostando al país, con todas las garantías y acciones que protejan su inversión.

Las personas que contratan este servicio pueden descansar en el mejor criterio de quien lo represente para que se dé cumplimiento a cada una de las obligaciones contractuales que se desarrollen en la actividad inmobiliaria.

Al final, se trata de confiar en un tercero para que se honre lo pactado en un contrato que logre la feliz adquisición del bien inmueble soñado, ya sea en la urbe capitalina o en algún paradisíaco destino de Panamá.

On October 29, 2015, the Swiss State Secretariat for International Financial Matters announced that the double taxation agreement (DTA) with respect to taxes on income and capital between Switzerland and Argentina will enter into force on November 27, 2015. It replaces the agreement of 1997 and is in line with the current international standard on the exchange of information.

The purpose of the new agreement is the avoidance of double taxation with respect to taxes on income and on capital, particularly those on dividends, interest and royalty payments. It adopts the majority of the provisions of the former agreement and complies with the current international standard on the exchange of information upon request. The new agreement will be applicable from January 1, 2016, with the exception of taxes withheld at source, for which relief will already be applied in 2015 according to the agreement.

The new agreement sets the maximum withholding tax rate for dividends at 15 percent, and provides for a ten percent rate where the beneficial owner is a company that holds directly at least 25 percent of the capital of the company paying the dividends. The withholding tax rate for interest payments is capped at 12 percent. The maximum withholding tax rate for royalties is 15 percent, with reduced rates of ten, five, and three percent applicable in certain circumstances.

Who is Mossack Fonseca?

Switzerland has signed joint declarations to automatically exchange tax information (AEOI) with Jersey, Guernsey, the Isle of Man, Iceland, and Norway, reports lowtax.net.

The Swiss Federal Council said that data collection will commence in 2017 and the first exchanges will take place in 2018. The exchanges will be based on the standards set out in the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA).

The bilateral declarations specify that the jurisdictions are satisfied with the confidentiality rules provided for in the other jurisdiction with regard to tax. The Council said that countries have also established regulatory procedures that allow taxpayers to regularize their tax affairs on favourable terms. The Council added that Iceland and Norway have reiterated their intention to hold talks on market access for Swiss financial services providers.

Switzerland's Federal Department of Finance will now hold consultations on the implementation of the declarations. The corresponding federal decrees will then be submitted to Parliament for approval.

Switzerland has signed a similar joint declaration with Australia, and an automatic exchange of information agreement has been concluded with the European Union.

The Intellectual Property Division of the Mossack Fonseca Group will take part in the first Blogger Influencer Week as a leading company promoting the importance of a blog’s content registration and copyright protection.

The organizers mainly seek to develop opportunities to enhance Panama as a tourist and business platform by promoting the talent of the most recognized, respected, and influential national and international bloggers.

“Panama City will once again play a leading role in an avant-garde event that is full of innovation with the first Blogger Influencer Week. As a leading company in our industry, we support these kinds of initiatives for the purpose of communicating and sharing the importance of copyright registration and protection,” stated the head of the Mossack Fonseca Intellectual Property Division, Ms Raquel Araúz.

Ms Araúz added that they have expanded their suite of services, aka Multiple Intellectual Property Services (MIPS), to guarantee the complete protection of trademarks, patents, and copyrights―thereby avoiding the counterfeiting and imitation of their clients’ products and services, both nationally and internationally.

The first Blogger Influencer Week will take place from 27th February to 5th March 2016 with various events to be held in the Republic of Panama. For more information regarding MIPS, please follow @mossfonmips in twitter using hashtag #CuidaTusIdeas. Read Article here.

MISSION

To deliver quality, reliable and comprehensive services to our worldwide clients in the legal, trust, investment consultancy** and digital solution fields through our group´s firms, our global network of offices, our highly skilled staff and the cutting edge technology we have always embraced, meeting client needs by generating value while being able to compensate our shareholders, our employees and the society at large in a responsible manner.

**Entity Regulated and Supervised by the Superintendency of the Securities Market of Panama. Licensed to operate as an Investment Adviser. Resolution No. 94-06 of April 26th, 2006.

VISION

To be the leading local and international group in the provision of legal and trust services, as well as investment consultancy** and digital solutions, known for our prestigious firms and our commitment to service and excellence.

**Entity Regulated and Supervised by the Superintendency of the Securities Market of Panama. Licensed to operate as an Investment Adviser. Resolution No. 94-06 of April 26th, 2006.

CORE VALUES:

• Customer Service Excellence
• Commitment
• Discipline
• Responsibility
• Honesty
• Loyalty
• Innovation

QUALITY POLICY

Mossack Fonseca & Co. is committed to offering quality legal and trust services in order to satisfy our clients, under a continual improvement scheme and with competent personnel.

A partir de este 18 de enero hasta el 6 de febrero, el prestigioso Centro de Tributación Internacional de Leiden dictará un curso ejecutivo en Panamá, llevando a cabo el programa ejecutivo de Ley tributaria internacional en Latinoamérica.

Para Mossack Fonseca es un gran privilegio patrocinar un evento de gran importancia como este, así como participar en calidad de asistente a través de su equipo de abogados locales e internacionales.

En la actualidad, la industria legal está sufriendo grandes cambios y es importante estar a la vanguardia de esos cambios para cumplir con las exigencias internacionales en materia legal. Por ello, Mossack Fonseca, empresa líder global en servicios integrales de carácter legal, fiduciario y contable, se hace presente en este programa.

La Universidad de Leiden es reconocida internacionalmente como una institución de primera línea en investigación. Además, ha llegado a acuerdos con numerosas universidades de todo el mundo con el propósito de facilitar la investigación, la cooperación y el intercambio de estudiantes y personal. Los temas a tocar en este curso serán divididos por semana en: tratados tributarios, temas avanzados, precios de transferencia. Entre los profesores que dictarán este curso están Kees van Raad, director de programas en derecho tributario internacional y Stefano Simontacchi, doctor en derecho fiscal en la Universidad de Leiden.

Este programa es dirigido a abogados, contadores y economistas de Latinoamérica que trabajen para el gobierno, en práctica privada, en el departamento de impuestos de alguna empresa o quien desee adquirir conocimientos acerca de las leyes tributarias internacionales. Mossack Fonseca dice presente con su participación, siendo consciente de la importancia de la renovación de la información para ofrecerles a sus clientes servicios óptimos y de calidad.

Sobre Mossack Fonseca

Mossack Fonseca es una empresa líder global en servicios integrales de carácter legal, fiduciario y contable, que cuenta con asesores legales especializados que cubren todas las áreas de práctica y dominan los asuntos relacionados con naves, migración, contratos y propiedad intelectual, así como derecho mercantil en general.

La empresa cuenta con oficinas todos los continentes y tiene más de 500 colaboradores alrededor del mundo; ofrece un servicio de excelencia, con más de 35 años de experiencia en servicios integrales de carácter legal, brindando asesoramiento personalizado y una experiencia de clase mundial con servicios exclusivos en línea, con disponibilidad las 24 horas del día.

Beach-side apartments in Brazil may have been used as bribes and to launder money for members of the ruling Workers’ Party, police and prosecutors said on Wednesday after ordering six arrests and 15 search warrants.

In the latest phase of Brazil’s largest-ever corruption probe, investigators are looking into whether construction firm OAS SA used apartments in the Solaris complex in Guaruja as bribes in a corruption scheme involving state-run oil firm Petrobras.

Dozens of executives and politicians have been arrested or are under investigation on suspicion of overcharging Petroleo Brasileiro SA, as the company is formally known, and using part of the proceeds to bribe members of President Dilma Rousseff’s ruling coalition.

The apartments were held in the name of front companies, such as Murray Holdings LLC that was registered by Panama-based Mossack Group, prosecutors said at a news conference, adding Mossack has previously helped hide criminal activity offshore.

“There is real evidence of money laundering. We are looking principally at this time at the Vaccari family,” said prosecutor Carlos Fernando dos Santos Lima, referring to Joao Vaccari, the jailed former treasurer of the Workers’ Party.

Vaccari has been convicted and sentenced to just over 15 years in jail.

OAS declined to comment. Mossack Fonseca, a law firm, said in a statement it had been "unjustly and erroneously included in matters with which we have no involvement at all." The firm said it was not under investigation and had not been contacted by police or the judiciary.

Local paper O Globo said former President Luiz Inacio Lula da Silva also had an apartment held under another name in the complex. Lima did not confirm this.

"If there was an apartment that was in his name ... or someone in his family, we will investigate it like any other," Lima said. Police said all the apartments in the complex were under investigation.

A statement on the website for Lula's office said the former president repudiates attempts to link his name with the corruption scandal. The statement reiterated that Lula's family bought an option for an apartment in the complex but later decided not to go through with the purchase. Lula has previously threatened to prosecute journalists for smearing his name in connection with the Petrobras case.

Neither Lula nor Rousseff is under investigation, though Rousseff's approval rating has suffered from the accusations against her political party.

Police only gave the name of one person that had been arrested, publicist Nelci Warken.