Panama Offshore Banking

Summary: Panama offshore banking is now benefiting from tightened regulation and controls and the jurisdiction has created a highly competitive, extremely private and confidential but well monitored offshore banking industry.

Panama has worked hard since the mid 1990’s to clean up its image after the Financial Action Task Force on Money Laundering listed it as a ‘non-cooperative tax haven’.

Subsequently Panama offshore banking is now benefiting from tightened regulation and controls and the jurisdiction has created a highly competitive, extremely private and confidential but well monitored offshore banking industry.

In Panama offshore banking today is governed by strict anti money laundering controls as well as exacting privacy guidelines and any customer who legitimately establishes an account can rest assured that their client confidentiality will be stringently enforced.

Where once there were in excess of one hundred and fifty international banks operating out of Panama there are now just over eighty, but of these all adhere to Panama’s new offshore banking laws which follow the guidelines of the Basle Committee on Banking Supervision which ensure client privacy and seek to prevent criminal banking activity.

The popularity of the jurisdiction for those seeking an offshore haven is further boosted by the fact that only locally generated income is taxed in Panama.  This means that those who choose to incorporate and bank in Panama but operate, hold assets and profit externally to the country can remit income to their Panamanian offshore bank account without having to pay local taxation on that income.

In terms of the type of offshore bank account available in Panama these include personal accounts, business and merchant accounts as well.  It’s possible to have internet banking facilities enabled for non-residents to access account information and perform transactions.  Furthermore it’s quite simple to get debit and credit cards and even checkbooks from an international or offshore bank account held in Panama.

It’s usual to have to make a minimum initial deposit to open a bank account in Panama and then once the account has been opened it’s usual to have to keep a certain balance in the account otherwise fees will be charged.  Other than that it’s a straight forward procedure to open an offshore bank account and there are many companies offering IBC incorporation and bank account establishment packages.  They all charge a similar fee for their services.  An individual wishing to open an offshore bank account will have to provide irrefutable proof of identity such as notarized copies of a passport as well as financial reference letters.

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