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Panama has several important laws and regulations protecting marine ecosystems.. 

 

1.  Law 304 of 31 May 2022​  PDF OF LAW  304 OF 31 MAY 2022

Law 304 is Panama’s principal law specifically protecting coral reef systems, coral communities and associated ecosystems and species. These associated ecosystems include reef fish, wetlands and seagrass beds. The law promotes their protection, conservation, sustainable use, restoration, pollution prevention, rehabilitation and ecological resilience.

 

2.  Law 41 of 1998.  PDF OF LAW 41 of 1998  General Environmental Law   

This law is the cornerstone of Panama’s environmental legislation.

Law 41 should be read as amended, particularly by Law 8 of 2015, which created MiAMBIENTE.

 

3.  ARAP Law  44 of 2006   PDF OF LAW 44 of 2006  (Autoridad de los Recursos Acuáticos de Panamá)

Law 44 created the Aquatic Resources Authority of Panama (ARAP). ARAP has responsibilities involving fisheries, aquaculture, aquatic resources and measures intended to protect Panama’s aquatic heritage and environment.

Depending on the activity, ARAP may have responsibilities concerning fisheries resources, aquatic species, mangrove use and other coastal or marine matters.

Law 44 gives ARAP functions aimed at protecting the national aquatic heritage and contributing to environmental protection.​

 

4. Executive Decree No. 1 of 1 March 2023, modified by Executive Decree No. 2 of 27 March 2024

Executive Decree No. 1 of 1 March 2023, as amended by Executive Decree No. 2 of 27 March 2024

These decrees regulate Panama’s Environmental Impact Assessment process under Law 41 of 1998.

They establish the procedures and requirements for determining whether a project, work or activity requires an Environmental Impact Study, the category of study required and the environmental review process that must be completed before the project begins.

 

General Overview of Marine Laws:

Together, these laws and regulations provide protection and management measures for:

• Coral reefs

• Sea grass beds 

• Reef fish and associated species

• Wetlands

• Mangroves

• Coral communities and habitats

The law declares these ecosystems to be of public interest and requires their protection, conservation, restoration and sustainable use.

 

Activities prohibited or restricted

Activities that may be prohibited, restricted or subject to environmental authorization include those that cause or risk causing:

• Physical destruction of reefs.

• Sedimentation or smothering of corals.

• Pollution.

• Dumping waste.

• Destruction of associated ecosystems such as sea grass beds.

• Harm to species dependent on reefs.

 

Projects in Bocas del Toro that may affect these ecosystems include::

• Dredging.

• Filling shallow seabeds.

• Building over reefs.

• Marina or dock construction.

• Improper sewage discharge.

• Sediment runoff from land clearing.

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Panama's framework environmental law requires:

• Environmental Impact Assessments (EIA).

• Prevention of environmental damage.

• Protection of marine ecosystems.

• Precautionary principle.

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Activities that may require environmental and other government approvals:

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• Dredging channels

• Filling seabed areas

• Building over water

• Piers and docks

• Marinas

• Breakwaters

• Seawall

• Pile driving

• Sand extraction

• Large coastal developments

• Excavation affecting marine habitats

• Building within the 10 meter high tide mark.

• Coastal, beach and overwater projects may also require approvals concerning public coastal areas, maritime concessions, land administration and protected habitats. See the separate Beach and Overwater Permit Requirements page.​

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Mangrove Protection 

Mangroves are ecologically important and subject to strict legal regulation. Cutting, filling, using or altering mangrove areas may require prior authorization and may also trigger environmental-review requirements.

Activities requiring authorization include:

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• Cutting or clearing mangroves

• Filling mangrove areas

• Excavation

• Construction through or within mangrove habitat

• Dredging channels

• Commercial or other use of mangrove forest resources

Because mangroves, seagrass beds and coral reefs are ecologically connected, damage to one habitat—such as sedimentation resulting from mangrove clearance or land disturbance—may also affect other protected ecosystems and may engage several environmental laws and permit requirements. Law 304. Mangrove alteration is highly regulated and should never begin without written confirmation from the competent authorities.

 

5. Environmental Impact Assessment Regulations

Projects, works or activities that may cause environmental alteration must be reviewed under the applicable EIA regulations to determine whether an Environmental Impact Study and prior environmental approval are required.

• Coral reefs.

• Sea grass beds.

• Marine fauna.

• Water quality.

• Ocean currents.

• Sedimentation.

Typical projects requiring EIAs:

• Hotels.

• Condominiums.

• Marinas.

• Roads.

• Bridges.

• Dredging.

• Coastal developments.

• Over water structures.

• Docks​

Penalties

Law 304 itself establishes protection but most sanctions are enforced through the broader environmental framework under Law 41 of 1998. Penalties are determined under the legislation and administrative procedure applicable to the specific case.

Possible penalties include:

Administrative fines

MiAmbiente may impose fines that can reach hundreds of thousands of dollars, depending upon:

• Severity of the damage.

• Extent of environmental impact.

• Whether the violation was intentional.

• Whether restoration is possible.

Suspension of works

Construction can be:

• Stopped immediately.

• Ordered to cease until permits are obtained.

• Subject to closure orders.

Restoration Orders

The responsible party may be required to:

• Restore damaged ecosystems.

• Remove illegal structures.

• Conduct environmental rehabilitation at their own expense.

Revocation of permits

Environmental permits can be suspended or revoked.

Civil liability

Affected parties may seek damages through the courts.

Criminal liability

Where environmental damage is severe or involves protected ecosystems or species, criminal charges and imprisonment may also apply under Panama's Penal Code.