Sounds like fun. First most folks will not use the app, since they have to give their personal information. Second, it will probably cause more accidents while the person tries to take photos or videos. However the fun begins when chronic violators (particularly parking) are reported and they go to get their license plates or other things that check the records, like pele (sp) police. Plus the cost of the "penalties" for late payment since fines escalate with unpaid time and who is going to tell you, you have a fine.
Of interest will be the liability of the person making the report if the report is erroneous, or deliberately malicious. I'm thinking of "calumnia" or perjury which are criminal offenses. So all in all it will be interesting to see how this works out. I'm thinking of Boquete, traffic and parking. We have police everywhere, riding around, so maybe they should just issue parking and "bad" driving offenders.
My pet peeve will be the vehicles with the LED blinding lights and the dark tinted front windows as soon as they add those to the list.