Once on the United States hit list as an uncooperative tax haven Panama has made large strides in the offshore banking world to both satisfy the United States while at the same time providing the level of privacy and banking secrecy that has helped Panama take in billions of dollars in investment.

Panama took steps to revise it’s tax laws to protect against illicit money laundering, drug trafficking and terrorist financing activities through it’s banks. The system that is in place is monitored by the international banking community to ensure that these illegal activities are not allowed to proceed once detected. First time visitors to Panama are impressed when they see the banks in Panama are so large. They don’t expect that a tiny third world nation could possibly have a huge and thriving banking business. In reality these banks take in foreign investment as most Panamanians live well below the poverty line and have no need for a bank account.

Panama has developed many laws in the offshore banking and tax spheres that are very friendly to foreign investors doing business outside of Panama. If you incorporate an offshore company in Panama then set up a corporate bank account for this corporation whatever deposits you make into this account on the companies behalf are tax free provided the money was earned outside of Panama.

The banks in Panama have a variety of different banking services to offer their banking clients. Which is nice for clients that require different options for their business. There are also three different types of accounts that you can set up at a Panama bank including, merchant accounts, personal accounts and corporate accounts.

Accessing your funds internationally can be done in two ways typically. You can access your account online using your bank’s website. From here you can transfer money internationally to and from the bank account (not available at all banks). The ATM card you will receive will allow you to access your funds virtually anywhere in the world.

Panama bank accounts can be set up for international customers without the need for them to visit the country. Furthermore, if privacy is an issue, an anonymous bearer share corporation can be incorporated in Panama with this corporation able to open up a company bank account in Panama. Your name will appear as a signatory in the bank’s records only and they are bound by strict banking secrecy laws. No government entity in Panama will know who owns your company and bank account. Only a court motion filed in a Panama court can have these banking secrecy laws lifted.

Since Panama has been removed from the non cooperative tax haven blacklist an influx of capital has happened. Combine this with a booming real estate market and growing tourism industry and Panama is really taking large steps to becoming a world class center.