The Panamanian Penal Code outlines strict penalties for various forms of fraud and deception, which are categorized as “scam” or “fraud” offenses. These crimes are punished with imprisonment depending on the severity of the offense and the circumstances under which the crime is committed.
Article 220: Basic Definition of Scam and Fraud
Article 220 addresses the fundamental act of scam or fraud, where a person uses deception to obtain an illicit benefit for themselves or a third party, causing harm to another. The penalty for this crime ranges from one to four years of imprisonment. However, the penalty may increase by up to one-third if the scam involves exploiting personal or professional relationships or if it is executed through cyber or computer-based means. This highlights the law’s recognition of the increased complexity and potential harm of digital scams, acknowledging the evolving nature of fraudulent activities in the modern world.
Article 221: Aggravating Circumstances
Article 221 outlines the specific circumstances under which the penalty for fraud will be more severe, with imprisonment ranging from five to ten years. These include:
- Significant financial harm: If the financial damage exceeds 100,000 US dollars (US$100,000.00), the crime is considered more serious.
- Abuse of authority: When the fraud is committed by individuals in positions of trust, such as agents, managers, or administrators, in the course of their duties, the penalty is heightened. This reflects the breach of fiduciary duty that is expected from individuals in positions of responsibility.
- Impact on public or charitable institutions: If the crime is committed against the Public Administration or a charitable institution, the penalty increases. This demonstrates Panama’s concern for the protection of public and social resources.
- Identity theft: The penalty is also harsher if the fraud is committed by usurping or using someone else’s identity for illicit gain, which is increasingly common in the digital age.
Article 222: Fraudulent Insurance Claims
Article 222 addresses fraud related to insurance claims, specifically the destruction, damage, or disappearance of an insured object in order to illegally claim an insurance payout. Those who commit this offense face imprisonment from two to six years. The law also applies the same penalty to an insured person who intentionally worsens the consequences of a personal injury to obtain an insurance benefit. This article underscores the importance of protecting insurance markets and preventing fraudulent activities that undermine the system’s integrity.
Article 223: Misuse of Pledged or Mortgaged Property
Article 223 deals with fraud related to property, specifically when a debtor or partner disposes of property that is pledged or mortgaged, as if it were unencumbered, or when someone creates a pledge or mortgage on someone else’s property. This offense carries a penalty of imprisonment from four to six years. This provision protects creditors and ensures that the property pledged as collateral cannot be fraudulently disposed of or manipulated.
Articles 224 and 225: Utility and Service Fraud
Articles 224 and 225 address fraud involving public utilities and telecommunications services. Article 224 penalizes the unauthorized use or capture of energy, water, telecommunications, and related services, with imprisonment of one to two years, and up to two to four years for those who transmit or distribute these services without permission. Article 225 addresses individuals who manipulate measuring instruments or alter systems to commit service fraud. These offenses are punishable by two to three years of imprisonment or fines if the consumption exceeds 250 US dollars. These articles focus on protecting both private utility providers and the public interest by ensuring that the consumption of essential services is legitimate.
Article 226: Cyber Fraud and System Manipulation
Article 226 addresses the manipulation of computer systems, databases, and networks to procure illicit benefits. The penalty for this crime ranges from four to six years of imprisonment. If the crime is committed by a person who is responsible for or has access to a system or database, or if it involves privileged information, the penalty increases to five to eight years. This article reflects the growing concern over cybercrimes and the increasing sophistication of digital fraud, recognizing that those with access to sensitive information or systems have the potential for greater harm.
Conclusion
In summary, Panama’s Penal Code provides a comprehensive framework for addressing various types of fraud and scam offenses, from traditional forms of deception to more complex cybercrimes. The law imposes stringent penalties to deter such crimes and protect both individuals and institutions from the damaging effects of fraudulent behavior. These provisions emphasize the seriousness with which Panama addresses fraud, including those committed in the context of public administration, financial harm, and digital manipulation.
If you require the guidance of a Panamanian lawyer because you suspect you have been a victim of a scam or fraud in Panama, please contact us at +507 6290-3468 or send us a message at info@lawyerinpanama.com.