May 2018 began with a small uproar regarding a notice on the Immigration Department’s website. This notice indicated that over 500 residency permits that have been granted since 2015 have now been revoked. Leave to appeal has been denied, because of the fraudulent documents. In this May 2018 immigration update, we examine shortly the reasons for this decision by the immigration department. We also advise what could and should have been done differently, in order to avoid this result.
May 2018 immigration update
Attached is the notice that appeared on the 30th of April on the immigration department’s website. This immigration notice indicates:
The National Immigration Service notifies of the cancellation of more than 500 provisional permits for General Immigration, temporary residency permits and permanent residency permits, after determining that for the mentioned immigration applications, the applicants presented fraudulent documents.
The names and dates of those whose permits were cancelled are detailed on the immigration website, specifically at www.migracion.gob.pa with the highlighted banners Notification Edicts.
The investigation
In an investigation beginning in 2017, officials found that certain employees of the Immigration Department, Social Security department and Internal Revenue had taken bribes. These bribes were for services for which there is no charge, but some bribes were to assist in presenting fraudulent documentation.
The principal cases of fraudulent documentation provided refer to the employment history of the applicants. This false employment history shows payments to Social Security for much longer than the person was really employed. Other cases refer to companies claiming to have more employees on payroll than those that labour there.
The primary cases of fraudulent documents include:
- false number of payments made to the Social Security department.
- Salaries declared do not match the person’s account within Social Security.
- There are employees registered on payrolls with companies where there is no labour relationship.
- There are falsified signatures of Social Security officials.
Ongoing investigation
In 2017 the immigration department installed a Social Security booth in the immigration department building. This booth cross-checks the documentation provided by applicants regarding Social Security quotas. Since this booth was introduced, documents submitted show inconsistencies with the records of the Social Security department. This lead to an investigation, which then resulted in a full-scale investigation back into previously approved applications. The investigation has uncovered a whole network dedicated to preparation of fraudulent documentation.
This comes close on the heels of a discovery of a $300 million fraud in the Social Security coffers, using the new SIPE software introduced a number of years ago. That investigation is still underway.
This investigation continues, with today (May 4th), a further 300 permits cancelled. Of the permits cancelled in this last group, it is estimated that over 250 are Venezuelan applicants. Last year alone, the immigration department deported over 5,500 over-stayers and illegal immigrants. This year that number will grow.
Avoiding fraudulent documents
The simple lesson here is that the “quick” solution is not always the best solution. Choosing the right visa for your situation is important, in order to avoid failing to provide the right documentation. This is why, for those investors who do not need a minimum of five (5) Panamanian employees, we recommend either the time deposit option or the reforestation visa if they do not have the $300,000 to put in real estate or a time deposit. It is not worth the risk of presenting false documentation!
For more information regarding how to get your Panamanian residency, please do not hesitate to contact us.
May 2018 immigration update