Panama Enacts Law Increasing Penalties for Fraud and Cybercrimes Up to 12 Years

Panama's President José Raúl Mulino has enacted a new law that significantly toughens penalties for fraud and cybercrimes. Signed on May 26, 2026, Law 524 amends key articles of the Penal Code, introducing more severe prison sentences and new aggravating circumstances for those convicted of these offenses.

The revised Article 220 of the Penal Code now stipulates that individuals who obtain illicit benefits through deception, to the detriment of another person, will face prison sentences ranging from three to six years. The legislation further allows for these sentences to be increased by up to one-third under specific aggravating conditions. These include offenses committed by exploiting personal or professional relationships, fraud perpetrated through cyber or computer means, and cases involving identity theft or impersonation.

Furthermore, the law imposes harsher penalties under Article 221. For cases where the financial loss exceeds $100,000, sentences will now range from seven to 12 years in prison. Penalties are also increased if the crime is committed by proxies, managers, or administrators in the course of their duties, or if it targets public administration or charitable organizations with a financial damage exceeding $10,000.

This legislative reform aims to strengthen Panama's fight against various forms of fraud and scams, particularly those leveraging digital tools and identity theft, which have seen a notable increase in recent years. The government seeks to provide a more robust legal framework to deter and punish these evolving criminal activities.