Why Data Privacy Compliance Matters in Panama
Panama’s Ley 81 de Protección de Datos Personales has been in force since 2021 and sets clear obligations for any organization that collects or processes personal data. Non-compliance can bring real consequences: fines of up to $10,000 for minor, serious, or very serious infractions, and in some cases, suspension or even permanent disablement of data processing activities.
Compliance also matters for business growth. Many Panamanian companies adopt strong data protection practices not only to avoid fines, but also to improve their credibility with multinational partners who demand high standards of privacy and security.
The law applies broadly. It covers individuals and organizations—public or private, for-profit or non-profit—that make decisions about how data is processed. It applies to those maintaining databases within Panama, storing personal data of nationals or foreigners, and even to foreign companies engaged in online activities that target Panamanian citizens. This extraterritorial reach means that international businesses cannot ignore Panama’s privacy law if they serve its residents.
About Ley 81 de Protección de Datos Personales
The law establishes a set of obligations for organizations to ensure personal data is processed lawfully and responsibly:
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Lawful Basis for Processing: Consent is important, but Panama’s law also recognizes other bases, such as processing required for legal or contractual obligations.
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Privacy Principles: Companies must comply with principles like purpose limitation, data minimization, transparency, and data quality.
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Retention & Accuracy: Data can only be stored as long as it is necessary and must be kept accurate and up to date.
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Data Subject Rights: Individuals have the right to access, correct, cancel/erase, object to processing, and request portability of their data.
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Breach Notification: Companies must notify ANTAI (Autoridad Nacional de Transparencia y Acceso a la Información) within 72 hours of detecting a breach, but only if it presents a risk to the rights and freedoms of those affected.
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Documentation: Companies are expected to maintain detailed records of processing activities, retention schedules, and data mapping.
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Security Measures: Adequate safeguards must be in place to protect personal data from unauthorized access, loss, or misuse.
The law took effect on March 29, 2021, and was further regulated by Executive Decree 285/2021. Enforcement is handled by ANTAI, which has authority to impose fines and oversee compliance.
Unique challenges include the tight 72-hour breach reporting window—which requires organizations to assess risks very quickly—and the requirement for thorough data mapping and transfer documentation, which can be a heavy lift for many companies.
How Our Data Privacy Consulting Services Help You Comply in Panama
At Oso, we build privacy programs that align with the requirements of Ley 81 and its regulations, while keeping them practical for your organization. Whether you’re a local business, a multinational with operations in Panama, or a foreign company targeting Panamanian residents, we help you stay compliant and reduce risks.
Gap assessments to identify where your current practices fall short of the law.
Privacy program design built from the ground up, including documentation and processes tailored to Panama’s requirements.
Staff training so employees know how to handle personal data and identify privacy requests.
Privacy officer support—we can serve as your outsourced privacy officer or support your in-house team.
Data mapping to track where personal data is collected, stored, and transferred.
Retention and deletion programs that align with legal requirements and business needs.
Processes for data subject rights (access, rectification, cancellation, opposition, and portability) that are simple for individuals and effective for your staff.
Our Process & Approach
Every organization is different, so we adapt our approach to your starting point.
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If you already have a privacy program: We’ll review your current framework, identify gaps, and propose a plan to bring you into full compliance. This includes a prioritized roadmap for short-, medium-, and long-term improvements.
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If you don’t yet have a program: We begin with a gap analysis to understand your business and legal obligations, then design a compliance program from scratch. This includes drafting documents, designing processes, and training staff.
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If you only need a specific deliverable: Even for a single item, like a website privacy policy, we take time to understand your processing activities so the document reflects your real operations.
Our process is hands-on and collaborative. We guide you from strategy and document design through implementation, making sure compliance is not just theoretical but practical and sustainable for your organization.
Why Work with Oso
At Oso, we combine global best practices with a clear understanding of Panama’s local legal framework. Our team has experience supporting multinational companies with Panamanian affiliates, helping them align with Ley 81 while staying consistent with broader corporate privacy programs.
We don’t believe in one-size-fits-all compliance. Instead, we adapt solutions to your organization’s real needs, building policies, processes, and training that work in day-to-day practice. If a best practice goes beyond local requirements, we’ll recommend it when it makes sense—so you’re not just compliant but also ahead of the curve.
Our bilingual team ensures you receive documents, training, and support in both English and Spanish, making collaboration easy for local staff and international leadership. With Oso, you get a partner that helps you comply today and prepare for future changes in Panama’s data privacy landscape.
Common Questions (FAQ)
Does Ley 81 apply to employee data?
Yes. Employee information is considered personal data and is covered by the law’s requirements.
What constitutes sensitive personal data under this law?
Sensitive data includes information that, if misused, could lead to discrimination or harm. This may involve racial or ethnic origin, religious beliefs, sexual orientation, health information, political opinions, or union affiliation. Processing this type of data generally requires explicit consent and additional safeguards.
Do foreign companies need to comply?
Yes. The law applies extraterritorially to foreign companies that target Panamanian residents with goods or services. Online commercial activities directed at citizens of Panama fall under its scope.
What is the timeframe for reporting a data breach?
Organizations must notify ANTAI within 72 hours of detecting a breach, but only if the incident poses a risk to the rights and freedoms of those affected.
What happens if we fail to comply?
Fines can reach up to $10,000, and in cases of repeated or very serious violations, authorities may suspend or permanently prohibit data processing activities.
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