Technology by itself moves much faster than its regulation. This is more so in the financial services industry than in any other economic sector. Accordingly, it is incumbent upon financial services providers to periodically update their risk management policies in order to keep up with emerging information technologies. During the last decade, Panama’s Banking Superintendence has enacted regulations aimed at managing technological risks and incorporating such practices in the corporate governance policies of its regulated entities.

In 2011, the Banking Superintendence of Panama passed Rule No. 006-2011 establishing guidelines for electronic banking and related risk management provisions. This rule defines terms such as ‘e-banking’, ‘internet banking’, ‘social networks’, ‘mobile banking’ and other prevalent modes of remote banking using technology. It requires Panamanian banks to seek and obtain the authorisation of the Superintendence prior to implementing the use of “each electronic channel”. The specific definition of e-banking is particularly broad and states that is “the provision of banking services through electronic media or channels. E-banking includes the services offered by: internet banking, mobile banking, telephone banking, point of sale terminals (POS), instant messaging (chats), social networks, e-mail, e-signature, e-money, ACH networks, specialised networks, automatic teller machines, mobile wallet (smart card) or mobile payment, credit cards with a chip, e-payment means or any other electronic means or channel”.

Oct-Dec 2017 Issue

Mizrachi Davarro & Urriola