PANAMA is a cryptographic module that was presented at the FSE Workshop in ’98 by Joan Daemen and Craig Clapp. It can serve both as a stream cipher and as a cryptographic hash function, with a hash result of 256 bits. PANAMA achieves high performance (for large amounts of data) because of its inherent parallelism. We will analyse the security of PANAMA when used as a hash function, and demonstrate an attack able to find collisions much faster than by birthday attack. The computational complexity of our current attack is 2⁸²; the required amount of memory is negligible.