Former bank executive detained in Panama's e-Tax credit probe

Panama's alleged e-Tax fraud case has reached the banking side. On Monday 5 October 2026, prosecutors from the Fiscalía Primera Especializada contra la Delincuencia Organizada, with the National Police and the DIJ, detained a former bank executive during a raid on a home in Condado del Rey, Panama City. According to the Procuraduría General de la Nación, he allegedly authorized payments tied to tax credits through a bank and received economic benefits in return. Officers seized computer equipment and documents. He was to be brought before a Tribunal de Garantías on charges of alleged private corruption and organized crime (TVN, Telemetro, Infobae). An arrest is not a conviction.

Update, 6 October: Judge Sandra Castillo ruled the arrest lawful, prosecutors formally charged the former executive with alleged organized crime and private corruption, and the judge ordered provisional detention while the investigation continues (Public Ministry, TVN). Formal charges are not a conviction.

What the Pandora case is about

Prosecutors say a network of officials at the tax authority (DGI) and private individuals manipulated the e-Tax 2.0 system. Their theory: the group erased or altered records of taxpayers who had already paid, made those payments look unapplied, and turned them into tax credits that were transferred and sold (La Estrella, Infobae). The estimated loss to the State is about US$40 million. Investigators have identified at least eight large taxpayers whose records were affected, and more than 20 people have been charged so far (Infobae). In August the lead prosecutor said the number of suspects could rise to 50 (Infobae).

What the bank says

BAC Panamá issued a statement on 5 October saying the detained man is a former employee who had already left the bank, that the case concerns individual conduct, that the bank bought the credits lawfully relying on official DGI certifications, and that it joined the court process voluntarily weeks ago. BAC says the matter is limited to tax obligations and does not affect customers' accounts, deposits or funds (Crítica). In July, an internal DGI audit concluded that the credit assignments applied to BAC International Bank were "improper and illegitimate" because they lacked a reasoned resolution from the DGI director; the bank has said it acted in good faith (La Prensa).

What changes at the DGI

The Ministry of Economy and Finance (MEF) has removed officials linked to the case, frozen the suspect tax-credit procedures, and asked the Comptroller for a full audit (La Estrella, 28 July). MEF audits also found that legal representatives and email addresses of companies had been changed inside the tax system to control the credits (La Estrella). Minister Felipe Chapman has promised a more robust platform where every step is logged (MEF). On 18 September the DGI held the public bid act for the e-Tax 2.0 modernization: five firms and consortia submitted offers, an estimated B/.6 million, financed by the Inter-American Development Bank (DGI). A government source told La Estrella the upgrade will be gradual and will not force users to migrate their data.

Bottom line for expats

If you own property, run a Panamanian company or file taxes here, e-Tax is where your obligations live: returns, RUC updates, card payments and your paz y salvo. Log in and check that your payments show as applied and that the email address and legal representative on file are still yours. Keep your own bank receipts for every tax payment. Be wary of anyone offering to sell you "créditos fiscales" at a discount to settle a tax bill. BAC customers have the bank's word that deposits are not affected by this case.

Sources

TVN - Ex-bank executive detained; Fiscalía Primera Especializada contra la Delincuencia Organizada + Policía Nacional + DIJ; Condado del Rey raid; equipment and documents; Tribunal de Garantías for alleged private corruption and organized crime - 5 Oct 2026
Telemetro - PGN quote on role; identity and bank not named by authorities; arrest is not guilt - 5 Oct 2026
Infobae - More than 20 charged; ~US$40M; at least eight large taxpayers affected; prosecutor Márquez (Aug): up to 50 suspects; DGI to replace e-Tax and review credit-assignment rules - 5 Oct 2026
Crítica - BAC Panamá statement: former employee already separated; credits bought lawfully on DGI certifications; joined process voluntarily; customers' accounts, deposits and funds not affected - 5 Oct 2026
La Prensa - DGI internal audit: assignments to BAC International Bank "improcedentes e ilegítimas"; bank says good faith - 22 Jul 2026
La Estrella - MEF removes officials, freezes suspect credit procedures, asks Contraloría for audit; changed legal representatives and emails detected; prosecution theory - 28 Jul 2026
La Estrella - e-Tax modernization gradual, no data migration (government source); e-Tax functions (returns, RUC, card payments, paz y salvo) - 4 Aug 2026
MEF - Chapman announces investigation and e-Tax replacement plan - Aug 2026
DGI (official LinkedIn) - Public act for e-Tax 2.0 modernization: five firms/consortia, est. B/.6M, IDB-financed - 18 Sep 2026
Ministerio Público (PGN) - Arrest declared lawful; charges of crimes against collective security (organized crime) and against the economic order (private corruption); provisional detention ordered - 6 Oct 2026
TVN - Judge Sandra Castillo orders provisional detention of the former bank executive; prosecutors sought charges of private corruption and organized crime - 6 Oct 2026 (18:57, upd. 20:19 Panama)