Frequently Asked Questions to open an account in Panama
Why open a bank account in Panama?
Panama is considered one of the best and most reliable financial centers in the world after Switzerland.
Panama also adheres fully to bank secrecy laws.
Panama is widely recognized as one of the best offshore banking jurisdictions in the world.
And it’s no surprise …
Panama’s banks are stable, conservative and well managed, and equally important, Panama’s economy is strong and diversified.
In fact, Panama is one of the safest economies in Central America, with low debt to GDP, stable sources of income and use of the US dollar.
Panama regulators are strong, but not dominant. And while compliance with opening a bank account in Panama may not be easy to navigate, if you know the correct approach to arrive with banks, this is not a problem.
Are opening a bank account in Panama tricky?
Opening an account in Panama can be tricky at your first try, but it doesn’t have to be that way when you know the process in advance.
Why have a bank account in Panama?
There are many reasons why it is good to have a bank account in Panama or in any other country, but the most important is security and freedom.
You may at any time face problems in your home country with either your government or a third party that through claims could compromise your assets by seizing your bank accounts and other assets.
So, if you have part of your money abroad, that money will be out of reach of those in your country who want to appropriate your assets.
Another important advantage offered by the bank account in Panama is that there is not so much restriction in money management.
For example, there are countries in which to enter money through international bank transfers face significant restrictions.
In Panama, it is much easier to move money, make transfers, etc.
Doing business in Panama is much easier because it is a country that lives out of doing business.
Does Panama have bank secret?
Yes Panama have bank secret and at the same time don’t have it.
Panama still has strict laws to keep bank secrecy in revealing who are the shareholders and signatories of the accounts.
It is worth mentioning that Panama has signed agreements with foreign countries for the exchange of tax information.
Although these agreements allow the exchange of information, it will only be carried out under the strictest security measures.
Authorities wishing to obtain an exchange of information may not go directly to the Bank and ask for general information. (for example, all US clients that have accounts in that Bank).
On the contrary, there must be a criminal judicial process established against a person for a signatory country to ask for information about that particular person.
The request must be made formally before the tax authorities of Panama and said request must be specific, not general.
From the above, you should be clear that the objective of having a bank account abroad should not be to evade taxes or hide illicit money, with those objectives sooner or later you will be the subject of an investigation, however bureaucratic and extensive the process described above.
Panama offers guarantees of confidentiality both at the Constitutional level and at the level of the Panamanian Banking Law.
The Constitution of Panama in Title 3 Chapter 1 that grants the Fundamental Guarantees dictates in articles 42 and 44 the guarantees of personal information (both for Panamanians and for foreigners equality)
On the other hand, the Banking Law in chapter 12 regulates everything related to the Right to Confidentiality. Articles 110 and 111 of said law dictate Administrative Confidentiality and Bank Confidentiality respectively.
However, if you are the subject of a criminal investigation, the banks through the Panamanian authorities will reveal all the information necessary to collaborate with the investigations according to the competent judicial channels.
If you face civil litigation in your country of origin (sequestration, seizure, confiscation, etc.) you are in most cases covered by the confidentiality guarantees in Panama.
You should keep in mind that Panama complies with FACTA.
How long does it take to open a bank account in Panama?
The time required to open a bank account depends on the bank, and it can take from 1 day to 30 days.
Time also depends on you to deliver all the necessary documents.
What are the best banks to open a bank account in Panama?
That depends on the type of investment you intend to make, as there are banks that are aimed exclusively at high-profile clients and others that are interested in small clients.
Regarding the ease of opening an account ideally, first, it is better to investigate in a bank whose source comes from your country of origin, because the requirements and paperwork could be more flexible.
For example, in the case of Canadians, the first option would be to inquire with Scotiabank; for Americans with Citibank, for Colombians Banco de Bogotá, for Chinese Bank of China Limited, and so on.
In specific cases, there are banks that from an office in their country of origin can open a bank account at their branch in Panama, so in that case, you will not need to travel to Panama.
On our List of Panamanian Banks, you will find all banks operating in Panama.
Is it legal to have a bank account in Panama?
Of course, it is completely legal to open a bank account in Panama.
Although Panama is a country that has been stigmatized for being considered a tax haven, it is not illegal to open a bank account in that country, in fact, it is quite the opposite.
The illegality is not in the bank account in Panama, but in what is done with it, or in the origin of the money consigned there.
It is natural that, if you use the account to launder money, to evade taxes, or to finance illicit activities, you will undoubtedly be committing a crime, but it is not for having the account in Panama but for the illegal activities that you perform.
How do I manage my bank account in Panama from abroad?
Managing your bank account in Panama from abroad is very simple, banks will give you access to your online banking platform from which you can make any movement of local or international funds you want and you can access your information at any time.
In addition to online banking, many of the Panamanian banks offer free mobile App for both Android and Apple, where you can manage everything from your cell phone.
Additional you will have the option of requesting a debit card with which you can withdraw money from ATMs almost anywhere in the world.