In this article, we’re exploring banking in Panama as an American. We’ll also share the challenges, market risks, reputation risks, and other risks to banking in Panama that American non-residents should be aware of before applying to open accounts here.
This article is part of our free series on the risks of banking in Panama. You can access this series right now by using the link above.
In addition to detailed account opening guides, this free series on Panama banking also discusses the largest banks in Panama, Panama opening requirements, the costs of banking in Panama, and much more. Use the link above to start exploring all of your free Panama banking content right now.
Alternatively, use the table of contents to continue exploring more information on banking in Panama as an American.
Table of Contents
- Banking in Panama as an American
- What Are the Challenges of Opening a Bank Account in Panama as an American?
- Frequently Asked Panama Banking Questions
- Do You Want to Open a Panama Bank Account?
Banking in Panama as an American
Banking in Panama as an American is possible if you know which bank, branch, and banker to approach. Americans can also open bank accounts in Panama 100% remotely as long as they choose the right bank and meet the account opening requirements.
Not all banks in Panama are created equal. This is especially true when it comes to opening accounts for American non-residents. It’s important to choose banks that accept international clients, comply with international banking regulations and Panama’s banking laws, and offer the types of services you are looking for.
Depending on the bank you choose, some financial services or investment options may be limited. It’s important to review and confirm whether or not the chosen bank offers the services to your specific client profile before applying to open an account.
Is It Safe for Americans to Open a Bank Account in Panama?
Yes, Panama is safe for Americans since most banks in Panama are safe. It is very important to choose a reputable bank and maintain reasonable deposits that match their risk tolerance. It’s also important for Americans, and other non-residents of Panama, to choose banks that accept international clients, are financially stable, and comply with international banking regulations.
If you are interested in learning more about banking in Panama, don’t forget to visit our comprehensive guide on banking in Panama, available in the link above.
Alternatively, if you would like to explore all of your offshore banking options, download our free guide and compare Panama to some of the top banking jurisdictions available.
Do You Want to Explore All Your Offshore Banking Options?
What Are the Challenges of Opening a Bank Account in Panama as an American?
Opening a bank account in Panama as an American can be challenging. This is because not all banks in Panama accept American non-residents. And, of the banks that do, not all offer remote account opening. This means that some banks will require an in-person visit to open a bank account in Panama.
Here is a look at the four most common challenges American non-residents face when opening a bank account in Panama.
Challenges of Banking in Panama
- Choosing the wrong bank
- Unable to meet the opening requirements
- Limitations on banking services and products
- Required to open an account in person
American non-residents looking to open a bank account in Panama will be required to navigate a strict due diligence process, where banks will conduct thorough checks on client’s backgrounds and financial activities. Most banks will also require additional documents, such as proof of tax compliance, a clear demonstration of why you want to bank in Panama, and a qualifying deposit.
Failing to meet these requirements limits your chances of opening a bank account in Panama. This is why bank selection is an important factor to consider when choosing where to open an account in Panama as an American non-resident.
It’s important to choose banks that accept similar client types, comply with FATCA, have requirements you can meet, and have deposits you can support.
Frequently Asked Panama Banking Questions
Below are a few of the most common questions we receive from people exploring banking in Panama as an American. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Do Panama Banks Report to the IRS?
Yes, Panama banks report to the Internal Revenue Service (IRS). The vast majority of banks around the world automatically report all accounts held by US persons under the Foreign Account Tax Compliance Act (FATCA).
What US Banks Operate in Panama?
The US banks that operate in Panama, include Citibank and JPMorgan Chase Bank. The difference between these two banks ultimately comes down to their license type. Citibank has a general banking license to operate in Panama, whereas JPMorgan Chase Bank has the authority to act as a representative in Panama. With this in mind, neither of these banks offers retail consumer banking services. Instead, they offer commercial and investment banking services.
Can I Transfer Money From a US Bank to a Panama Bank?
Yes, you can transfer money from a US bank to a Panama bank through various transfer methods. The methods available to you will depend on the bank you are with, the type of account you have, the amount of money you are transferring, and how the person in the US wants to receive the transfer.
Do You Want to Open a Panama Bank Account?
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To learn more about opening accounts with GlobalBanks IQ, use the link in the top menu. Or, contact us directly with any questions!
