Cyber Law at Panama
Panama has been actively developing its cyber law framework, seeking to strengthen its defenses against cybercrime and protect personal data. Like many Latin American countries, its legal system is based on the civil law tradition.
Here's an overview of the key areas of cyber law in Panama:
1. Cybercrime Legislation:
Panama's primary legal framework for combating cybercrime is integrated into its Criminal Code (Código Penal), particularly the one enacted on April 26, 2010. While not a standalone "Cybercrime Law" initially, specific articles within the Criminal Code address cyber offenses.
Amendments and Alignment with Budapest Convention: Panama has been working to update its legislation to align with the Council of Europe's Convention on Cybercrime (Budapest Convention). Recent amendments to the Criminal Code, the Code of Criminal Procedure, and laws on international legal assistance in criminal matters, passed by the National Assembly in October 2024, aim to bring national legislation fully in line with the Budapest Convention. These amendments may also include elements of the Second Additional Protocol to the Convention.
Key Cybercrimes Addressed: These laws criminalize various acts, including:
Unauthorized access to computer systems (hacking).
Data interference or sabotage.
Misuse of devices (e.g., producing, selling, or possessing tools for cybercrime).
Computer-related fraud and forgery.
Child pornography and online exploitation.
Cyberstalking and online harassment.
Online defamation.
Procedural Powers: The Criminal Procedure Code (e.g., Art. 311, 314) and Judicial Code grant authorities powers for investigating cybercrime, including:
Wiretapping and interception of online communications.
Seizure of computer equipment and data.
General rules for search and seizure.
2. Data Protection and Privacy (Law No. 81 of 2019):
This is a significant piece of legislation, establishing a comprehensive framework for personal data protection in Panama, taking inspiration from international standards like the EU's GDPR. Law No. 81 was passed on March 26, 2019, and came into force on March 29, 2021.
Key aspects of Law No. 81 include:
Scope: Applies to databases and data processing activities within Panama, regardless of whether the data belongs to nationals or foreigners, or if the data controller is domiciled in Panama.
Principles of Data Processing: Establishes core principles that must be respected during data processing, including:
Loyalty (Fairness): Data must be processed lawfully and fairly.
Purpose: Data must be collected for specific, explicit, and legitimate purposes.
Proportionality: Data processing must be adequate, relevant, and limited to what is necessary.
Veracity and Accuracy: Data must be accurate and kept up to date.
Security: Appropriate technical and organizational measures to protect data.
Transparency: Data subjects must be informed about data processing.
Confidentiality: Maintaining the secrecy of personal data.
Legality: Processing must have a legal basis (e.g., consent).
Portability: Right to obtain data in a structured, commonly used format.
Consent: Explicit consent from the data subject is generally required for processing personal data, though exceptions exist (e.g., judicial investigation, financial intelligence, public domain data, contractual necessity).
Sensitive Data: Strict rules apply to sensitive data (e.g., racial origin, religious beliefs, health, sexual preference, genetic, biometric data), generally requiring explicit consent.
Data Subject Rights (ARCO Rights): Individuals are granted rights to:
Access: Obtain information about their data and its processing.
Rectification: Request corrections or updates to inaccurate data.
Cancellation (Erasure): Request deletion of data under certain conditions.
Opposition: Object to or revoke consent for data processing.
Portability: Receive their data in a transferable format.
Data Breach Notification: Organizations are required to immediately notify the National Authority for Transparency and Access to Information (ANTAI) and affected data subjects upon becoming aware of a security breach.
Cross-Border Data Transfers: Permitted if the recipient country or entity has comparable data protection standards or if the data subject has consented.
Enforcement and Penalties: ANTAI is the primary enforcement authority and can impose fines ranging from USD 1,000 to USD 10,000 for violations, along with other measures like warnings or suspension of data processing.
3. Electronic Commerce and Digital Signatures:
Panama has also put in place legislation to facilitate electronic transactions and recognize the legal validity of electronic and digital signatures.
Law 51 of July 22, 2008: This is the main law defining and regulating electronic documents and signatures, and the provision of technological storage and certification services for electronic signatures. It aims to develop electronic commerce.
Law 82 of November 9, 2012: Amends Law 51 and grants the Public Registry of Panama powers as an electronic signature root registrar and certifying authority.
Executive Decree 684 of October 18, 2013: Further regulates and updates aspects related to certification providers and security standards.
Legal Validity: Electronic documents and signatures are granted legal value, with qualified electronic signatures (backed by a digital certificate) providing a higher degree of security and legal certainty, especially for documents requiring a high level of trust.
Digital Certificates in the Cloud: Recent resolutions (e.g., DG-033-2023 in January 2023) allow for digital certificates to be stored in the cloud, enhancing accessibility and ease of use.
4. Internet Freedom and Censorship:
Panama generally has a high degree of internet freedom.
No General Restrictions: There are typically no government restrictions on access to the internet or censorship of online content.
No Monitoring without Authority: Credible reports indicate that the government does not monitor private online communications without appropriate legal authority (e.g., court order).
Temporary Disruptions: It's important to note that in rare, specific circumstances, authorities may temporarily suspend internet or mobile phone service, particularly during states of emergency or severe civil unrest, as seen in recent events (e.g., June 2025 in Bocas del Toro province). Such actions would be based on emergency decrees and are typically localized and temporary.
In summary, Panama has a developing but increasingly robust cyber law framework, particularly with the comprehensive data protection law and recent updates to its cybercrime legislation to align with international standards. Businesses and individuals operating in Panama's digital space must be aware of these evolving regulations.
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