Click Partners

Panama City glistens in the daytime sun and is decorated with enough skyscrapers that make it appear like a miniature Manhattan. But what is more important is the way in which banking in Panama in general is enjoying its moment in the sun. The banking industry in Panama has developed quite an allure for businesses and corporations that are engaged as offshore operations.

Panama’s offshore banking success story can be attributed to the fact that the United States removed Panama from the uncooperative tax haven list after Panama overhauled it’s banking standards and regulation to help the international community root out serious criminals such as drug traffickers.

Panama’s banking and financial sectors made the right choices by supporting the FATF and OECD rules which were enacted to root out international criminals who use the allure of financial privacy to perform illicit activities. This stance has helped Panama to get removed from the uncooperative tax haven list and in conjunction with the real estate boom has led to a renewed prosperity in Panama’s banking sector.

Just as the practice occurs in the United States, it has become common practice in Panama to put tighter controls on banks so that they now are reporting all deposits and withdrawals in amounts exceeding $10,000. This control was also implemented as a direct result of the FATF and OECD movements as well. Panama has been removed from the non-cooperative tax haven list and is reaping the rewards.

Panama had a lot riding on making the proper choices in terms of what regulations they needed to accept to continue to draw new banking clients as well as keep capital from leaving the country if they gave up too much privacy which is the big attraction of Panama to many investors.

Panama has risen to the top of the pack and become one of the most secure offshore international financial centers in the world through their rock solid banking secrecy laws and steadfast enforcement of these laws.

Banking in Panama provides the offshore banking client of all of these aspects whether it is for their offshore corporation or for personal accounts as well. Additionally, the different government agencies have become very active in the fight against financing organized crime and terrorist activities, as well as the prevention of money laundering for these purposes. This also benefits the offshore clients in knowing that their transactions will always be safe and secure since Panama is known to cooperate with authorities for major crimes.

The government has become very proactive in these areas, and continues to create and implement legislation that enables banking in Panama to continue to excel in the international financial industry.