The Panama fracture zone is a major, active right lateral-moving transform fault and associated inactive fracture zone which forms part of the tectonic boundary between the Cocos plate and the Nazca plate, the Cocos–Nazca spreading centre.
It is part of the triple junction between the Cocos plate, Nazca plate and Caribbean plate which is moving in the southeastern direction at 5.5 cm/yr.
The active transform section runs from the Costa Rica Rise to the Middle America Trench.
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