Requirements to Open a Bank Account in Panama
Requirements to Open a Bank Account in Panama
- Panama Banks
- Posted:
- Last Update: January 25, 2024
Requirements to Open a Bank Account in Panama
As an indispensable requirement for opening a bank account in Panama, it is necessary to submit specific paperwork to the bank.
Laws addressing money laundering and terrorist financing mandate that banks in Panama request certain information and conduct a brief investigation into the individual or entity opening the bank account.
While, in theory, all clients are required to provide the same documentation, in practice, the amount of paperwork needed varies based on the type of persona (personal or business) and the nationality of the account holder.
We can categorize this paperwork into two main groups: Bank Forms, and Documentation.
The documentation typically requested will vary depending on whether it is for a personal account or a business account.
We can summarize the requirements to open a bank account in Panama in the following table.
| Requirements | Panamanians | Non-Panamanians |
|---|---|---|
| Who are you? | Cedula | ID/Passport |
| Where do you live? | Invoice with Address | Invoice with Address |
| Where does the money come from? | Employment letter/ Tax report | Employment letter/ Tax report |
| Are you a good customer? | Banking Reference Letter | Banking Reference Letter |
| Who knows you? | Personal Reference Letters | Personal Reference Letters |
| Why are you opening the account? | - | Bond with Panama |
| Are you an American Citizen? | FATCA Form | FATCA Form |
| How is your Credit Score? | APC Form | APC Form |
| How your bank account will be manage? | Bank Account Profile Form | Bank Account Profile Form |
Keep in mind that the process of opening a bank account in Panama is a legal procedure, as it establishes a contractual relationship with the bank where the account is being opened.
For this reason, sometimes it is necessary to officially legalize certain documents originating from abroad and translate them into Spanish.
Bank Forms
Bank Forms, as the name implies, are documents—either physical or digital—designed for users to input structured data (such as names, surnames, addresses, dates, etc.) in the designated areas. This information is then stored and processed at a later stage.
The requirements for opening a bank account in Panama may render the process more bureaucratic compared to other countries.
Bank forms will vary from one bank to another, although typically, there are at least three types:
- Bank Account Profile Form
- Individual Form
- FATCA Form
These forms play a crucial role in facilitating the account-opening process, and understanding their specific requirements is vital for a smooth application process.
Documents
Documents serve as tangible evidence, providing material proof of a fact, typically recorded on various types of support, commonly on paper.
Submitting documents is a requisite for opening a bank account in Panama, and the specific requirements may vary from one bank to another. These variations depend on the nationality of the account holder and the type of account or bank product being opened.
Some of the most commonly requested documents include:
- ID
- Income Statement
- Reference Letter
- Bill (for address verification)
These documents play a crucial role in the account-opening process, and understanding the specific requirements will ensure a smoother application procedure.
Requirements to Open a Personal Bank Account in Panama
Depending on whether the account holder is Panamanian or foreign, the bank will request different documentation.
Below, we will outline the requirements for each scenario.
Please note that, in general, the same documentation is requested regardless of whether it is a savings account, checking account, fixed-term deposit, etc.
Locals
Panamanians are asked for this documentation:
A Personal Identity Document is required to establish the true identity of the individual opening the account.
Generally, an invoice, such as a water bill, Internet bill, or TV bill, indicating our address is sufficient.
An Income Statement is required to verify that the funds originate from lawful activities. Usually, a proof of employment letter or the last annual tax report is sufficient.
A Third-Party Bank Reference Letter, while not always an essential requirement, is requested by some banks. It is highly beneficial to have a letter from any bank (from any country) indicating that you are a customer.
Two Personal Reference Letters can be obtained from friends or even family members not residing with you. These letters simply attest that the individuals know you.
A document in which you declare whether or not you hold American nationality in accordance with FATCA regulations.
Signing the APC authorization form is necessary. This form grants the bank permission to inquire about our credit history and credit score from the APC, a Panamanian Credit Information Bureau.
The account profile is a document where we declare our anticipated usage of the account. In this form, we specify the estimated amounts, frequencies, and types of deposits and withdrawals that we anticipate the account will have.
Foreigners
Non-Panamanian need the following documentation:
The passport is essential to validate and establish your nationality and identity. Additionally, a second identity document, such as a driver’s license or social security card from your own country, is required. Optionally, you may also provide a residential Panamanian ID (Cedula).
Generally, an invoice, such as a water bill, Internet bill, or TV bill, indicating our address is sufficient.
An Income Statement is required to verify that the funds originate from lawful activities. Usually, a proof of employment letter or the last annual tax report is sufficient.
A Third-Party Bank Reference Letter, while not always an essential requirement, is requested by some banks. It is highly beneficial to have a letter from any bank (from any country) indicating that you are a customer.
Two Personal Reference Letters can be obtained from friends or even family members not residing with you. These letters simply attest that the individuals know you.
Bonds with Panama: It is necessary for the foreigner to demonstrate some form of connection with the country. Having a business, purchasing property, investing in forestry projects, among other activities, are considered ties with Panama and are sufficient to meet this documentation requirement.
In some cases, a letter from a lawyer indicating that your immigration status is under process comply with this requirement.
A document in which you declare whether or not you hold American nationality in accordance with FATCA regulations.
Signing the APC authorization form is necessary. This form grants the bank permission to inquire about our credit history and credit score from the APC, a Panamanian Credit Information Bureau.
The account profile is a document where we declare our anticipated usage of the account. In this form, we specify the estimated amounts, frequencies, and types of deposits and withdrawals that we anticipate the account will have.
Requirements to Open a Corporate Bank account in Panama
The requirements for opening a commercial bank account in Panama closely resemble those requested for a personal bank account. It’s important to note that the bank will request all necessary personal documentation for each shareholder of the company and for each individual authorized to sign on the bank account (refer to the details above).
Furthermore, the bank will seek information related to the company itself.
All the documentation mentioned above as necessary for opening a personal account will be required from each individual with signing privileges.
All the documentation specified above as required for opening a personal account will be requested from each board member and stockholder. It’s important to note that the stockholder doesn’t necessarily have to be a signatory, and the signatories don’t necessarily have to be partners, although they can be the same person.
This documentation is required to legally identify the entity opening the bank account in Panama. Some banks will allow you to open an account with entities incorporated from abroad.
A statement indicating the final beneficiaries of the corporation and their shareholding
Provide the last two tax filings of the company. If the company has been in operation for only one year, then the last one is sufficient. For companies with less than one year of operation, the tax declaration of the shareholders will be required.
A minute of the Board of Directors, signed by the secretary and the president, authorizing the opening of the account. This document should indicate the names of the signatories for the bank account in Panama and specify the signing authority for checks.
If the company is operational, include letters from vendors or clients confirming that they have engaged in business with your company. The lawyer who incorporates your business can also provide one of these letters.
If the company is operational, letters from other banks will be required. These letters should indicate that our business utilizes the services of those banks.
The account profile is a document where you declare a forecast of the expected use of the Panamanian bank account.
In this document, you should outline the anticipated income and outgoing funds expected in the account.
We can summarize the requirements to open a corporate bank account in Panama according to the following table.
Summary of Requirements to Open a Corporte Bank Account in Panama
| Requirement | Document |
|---|---|
| Who are the stockholder? | Personal Documentation |
| Who are the Board of Director? | Personal Documentation |
| Who is your company? | Articles of Incorporation |
| Are they really the owners? | Ownsership Sworn Declaration |
| Where does the money come from? | Income Tax Retrun |
| Who can sign ? | Minute of signatories |
| Are you a good company? | Commercial Reference Letter |
| Are you a good customer? | Bank Reference Letter |
| How will the bank account be managed? | Bank Account Profile Form |
Any type of company, Panamanian or foreign, follows the same requirements to open a bank account in Panama.