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Proposed law seeks to regulate solidarity fundraising campaigns and penalize solidarity fraud

Preliminary Bill 456 creates a transparency framework and classifies 'solidarity deception' as a criminal offense in Panama.

La Catedral Metropolitana en el Casco Antiguo
By Mesa de Análisis Económico · Análisis · April 28, 2026

The National Assembly received Preliminary Bill No. 456 on April 27, 2026, introduced by Representative Víctor de Jesús Castillo Cortez of Circuit 3-1. The initiative proposes to regulate public solidarity donation fundraising campaigns — including those conducted through digital platforms — and to establish in the Penal Code the offense known as 'fraud through solidarity deception,' a category that until now has no specific treatment under Panamanian law. The text was referred to the Committee on Labor, Health and Social Development, where it remains at a preliminary stage, pending sponsorship.

The bill's explanatory memorandum recognizes public solidarity as a collective legal good and notes that in recent years there have been multiple cases in which individuals have used deception, simulation of illness, emotional manipulation, and the improper use of public campaigns to obtain illicit financial benefits, diverting funds donated in good faith by citizens. The document points out that Panama's Penal Code addresses fraud in general terms, but the absence of specific regulation governing solidarity campaigns hampers the effective investigation and prosecution of such conduct, generating impunity and eroding social trust.

To address that regulatory gap, the bill announces the establishment of prevention, transparency, and oversight mechanisms applicable to donation fundraising campaigns. According to the explanatory memorandum, the measures are designed to ensure that funds raised actually reach those in need, and that donors have accurate information about how their contributions are used. The document frames the initiative as a strengthening of civic solidarity through clear rules, rather than as a restriction on solidarity practices.

On the criminal side, the proposal announces additions to the Penal Code to sanction 'fraud through solidarity deception,' distinguishing it from the existing generic fraud offense. The sponsor's rationale is that the deliberate exploitation of citizens' good faith in humanitarian or social-emergency contexts warrants an autonomous criminal category that facilitates investigation and allows for sanctions proportionate to the harm caused to collective trust.

Preliminary Bill 456 is at the earliest stage of Panama's legislative process — preliminary stage, pending sponsorship — and has not been assigned a date for a first debate. To become law, it must pass through three debates in the National Assembly, including review by the Committee on Labor, Health and Social Development. The initiative does not affect private donations between individuals, only public campaigns that appeal to the general public.

Sources
  • Anteproyecto de Ley 456 — Campañas de recaudación de donaciones solidarias y sanción del fraude mediante engaño solidario (Asamblea Nacional)

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