PANAMA BANK ACCOUNTS

 

 

Panama's location makes it a natural conduit for banking between North and South America, besides being home to the Panama Canal which generates a considerable amount of bank-related international shipping business. Further, the banking sector is augmented by the number of "offshore" registered companies (approximately 350,000) many of which need banking services.  In some cases, clients choose Panama because of the excellent banking facilities offered, and for this reason companies are incorporated here in the first place. In other instances, it is regional commercial ties that make Panama the natural choice for both corporate and banking management.

Panama's confidentiality laws are also a magnet for some, particularly when similar laws in other offshore financial services centres are now in danger of compromise. In recent times, worries over tax revenue losses have begun to rival concerns over drug trafficking and money laundering. The United Kingdom, as an example, has several dependencies which are offshore financial services centres (including the Cayman Islands, the British Virgin Islands and the Channel Islands) and they are all destined to have regulatory and supervisory changes that will align them more closely with the systems found in the European Union. Consequently, the strict privacy which has been the backbone of their offshore business may be diluted to a point which will displease a vast number of individuals and corporations who have, for many years now, taken for granted the right to privacy.

Only those offshore financial services centres which are not bound through sovereignty to the political and social agenda of another country will be able to counter the inevitable pressures which will be applied. Panama is one of those jurisdictions. The debate about offshore confidentiality is too complex to either discuss or summarize in this brief summary, but it is fair to say that many feel that Panama's position reflects a balanced approach. It is an approach that is undoubtedly going to continue to attract more and more business to this offshore banking centre.

Requirements:

The following information is intended simply as a guideline for the general requirements which banks in Panama have with respect to the opening of bank accounts here. Each bank has its own requirements and should be contacted with respect to the services offered and the updated account opening requirements. 

Panama recognizes its responsibilities in support of the international concerns regarding drug trafficking, money laundering and other illicit funds activity. This was introduced into legislation by Law No. 41 of 2001, following the events of 9/11 and the concerns regarding the international cooperation of banks to ensure that the financial centres do not support in any way illicit activities.   Stringent monitoring and vetting procedures have been introduced and banks in Panama take seriously their obligation to comply with the provisions of the Panamanian banking law.

 

Account opening process: 

1. Personal Interview & delivery of all due diligence documentation

2. Account is reviewed and approved by the compliance department (some banks take 2-3 days, and others take up to 8 working days)

3. Signing of the account opening forms (2nd visit to the bank) for processing of account opening

4. Account number assigned and you are able to deposit the funds 

Where you intend to open an account for a corporation, you should be prepared to provide the following information and documentation:

1. A personal interview. Most banks require that the interview be in person. This means that it is necessary for the client to travel to Panama in order to open the bank account. Therefore, it is recommended that when clients come to Panama, they have ready all of the documents and information listed below.

2. A clear copy of the beneficial owners`s (s) passport(s), as well as one other form of identification (such as a drivers`s license or national ID card). (Of the passport, this usually includes the pages of the photograph, signature, and personal information pages, as well as the pages regarding entry into Panama). This is required for each director and signatory on the account.

3. From the passport copy (or other immigration documents) a copy of the page that shows that the person is legally in Panama.

4. Two original bank references for each beneficial owner and account signatory which should confirm the satisfactory conduct of the person `s accounts and that the relationships have been of at least two years duration. Preferably, the references will also confirm the actual residential address of the person. Depending on the choice of bank, reference letters may need to be addressed to the local bank where the new account is to be opened.

5. Credit references

6. If you are working here in Panama, then you should provide a letter from the employer or proof of the salary that you earn.

7. If you are self-employed, then proof of a business license or permit.

8. If retired, a copy of your pension letter.

9. Two professional references for each beneficial owner and account signatory – which should indicate the nature of the relationship (i.e. Accountant, lawyer, insurance broker, etc.) as well as the length of the relationship.

10. Brief details of the applicant`s business (usually called an “Account Profile”. This is reviewed by every local bank`s Compliance Officer who is required to vet all new account applications in accordance with the monitoring procedures laid down. The information required is:

 

a. The nature/line of the company's business, or intended business, and the approximate annual volume of business which the company does or will do.

b. The location(s) of the business.

c. The origin or source of the funds to be deposited in the new account.  Sometimes the bank will request proof of the source of funds.  Examples of documents which may be provided are:

d. Letter from your bank indicating that the funds are held there and they have done their Due Diligence as to the source of funds (many banks are not prepared to give this letter as they are providing a guarantee to the bank in Panama) 

e. Copy of a contract or document which shows the source of the funds (in the case of the sale of a house or business, resulting in a large capital movement)

f. Tax returns (last 2 years) - showing that you have, over the years, accumulated such wealth through normal, legal means

g. The reason for opening the new account in Panama.

h. The approximate annual/monthly volume of funds which will pass through the new account. (Usually the banks will require that you specify the number and volume of incoming and outgoing transfers into the account, as well as the cash or check deposits and the cash or other withdrawals from the account).  Account activity should then mirror the information which is provided - otherwise the bank officer will contact you to inquire regarding the difference between the estimated activity and the actual activity conducted in the account.