Opening a Panama bank account online is one of the easiest financial strategies you can use to open an offshore bank account. In short, Panama is a great first step into the world of international and offshore finance.
However, there are important pros and cons you must consider before applying to open an account in Panama, which we discuss below.
However, more important than the pros and cons of banking in Panama, the opening deposit, or even which bank you choose is this WARNING.
Panama Bank Account Warning:
Lawyers, accountants, advisors, real estate agents, and everyone in between want to “sell you” a Panamanian bank account. They all promise remote opening, no-hassle compliance, and well-run banks. They also want to charge you (what we consider) an extortionate fee for their limited service.
These “professionals” charge up to $5,000 to “assist” you with the opening of a bank account at financial institutions that you’re able to access yourself 100% remotely.
Like financial institutions in many other Latam banking jurisdictions, including banks in Puerto Rico, the Bahamas, and even Miami, banks in Panama cater to specific client groups, offer unique services and products, and have unique opening requirements.
We’re going to discuss these requirements and the unique banking perks and advantages you can unlock with offshore accounts in Panama.
Use the table of contents to continue exploring more information on how to open a Panama bank account online.
Table of Contents
- Can I Open a Panama Bank Account Online?
- What Is the Panama Papers?
- What to Know About Panama Bank Account Interest Rates?
- Are Banks in Panama Safe?
- Can I Open an Account Remotely With a Panamanian Bank?
- What Are the Challenges of Opening Panamanian Accounts Online?
- Frequently Asked Panama Banking Questions
- Do You Want Help Opening Bank Accounts?
Can I Open a Panama Bank Account Online?
You can open a Panama bank account online. Both foreign non-resident individuals and companies are eligible to open Panamanian bank accounts remotely. Some banks do require proof of ties to the country, but this isn’t always a requirement.
The entire process of opening a Panama account is possible to navigate on your own without the help of professional advisors, lawyers, or accountants. It’s important to note that using these services (which do not offer refunds) does not guarantee account opening.
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What Is the Panama Papers?
Before diving in too far, let’s first talk about the Panama Papers (yes they’re still relevant). Unfortunately, the Panama Papers put the spotlight on Panama as an offshore jurisdiction, resulting in beefed-up compliance and more account-opening challenges.
The leak happened in 2016, but it’s still a sore spot in Panama and the local banking sector.
It was hard to find anyone in Panama who was excited about Netflix’s star-studded film ‘The Laundromat’ when it was released in 2019.
It’s hard to write an article about Panama without at least mentioning the Panama Papers. They exposed politicians, movie stars, and elite athletes from around the world and yes, Panama played a role.
That’s the obligatory mention of the leak out of the way. Now, let’s talk about something more relevant and much more exciting, interest rates.
What to Know About Panama Bank Account Interest Rates?
There are many reasons why people are interested in opening Panama bank accounts, not the least of which is the wide range of banks in the country. Additionally, it’s common for Panama foundations and companies to open accounts here since they face challenges in most other countries.
One of the main catalysts for foreigners and foreign companies is the high-interest rates at Panamanian banks. Unlike the US, Canada, or EU member states, banks in Panama offer attractive fixed deposit rates.
Just like the local economy, your account is denominated in USD when banking in Panama.
Speaking of which, the economy is based on financial and professional services, tourism, and of course, the Panama Canal. Making this tiny Central American country one of the most important transport and logistics hubs in the world.
The interest rates on offer are not only attractive but they’re situated in a relatively stable economy backed by sound fundamentals. Panama is an interesting option for you to consider if you are looking for a risk-adjusted return on your deposit accounts.
Let’s look at another important consideration, the safety and security of Panamanian banks.
Are Banks in Panama Safe?
It’s important to note that before you open an offshore bank account in Panama, take a close look at the bank. How are the financials? How strong are their correspondent banking relationships? These factors are important to consider if you don’t plan on visiting the branch in person.
We strongly suggest understanding each bank’s financial stability, business operations, investment behavior, and strength of their correspondent banking relationships before you open accounts.
We also suggest confirming bank solvency and bank liquidity and asking about the bank’s business model. Do they generate the majority of their money from lending to retail customers? Or do they generate revenue from fees and services?
Which Panamanian Banks Are Safe?
Like most places in the world, you need to avoid Panama banks that are actively engaged in retail lending, toxic investments, overexposed to construction and real estate, and have shakey correspondent banking relationships or ‘fast and loose’ compliance policies.
It’s important to focus on banks that have small (or non-existent) loan portfolios, generate the majority of their revenue through fees and services, and have strong financials. Look for banks that are not at risk of losing their correspondent bank relationships and where regulators aren’t going to shut them down.
Such banks do exist in Panama. A few banks in Panama have significantly stronger financials than banks in the US, Canada, and Europe. Finding them requires knowing which questions to ask and where to look. Having a direct introduction to a good banker doesn’t hurt either–like the ones we provide to GlobalBanks IQ members.
Can I Open an Account Remotely With a Panamanian Bank?
Surprisingly, just about anyone can open an online bank account in Panama. We’ve helped many GlobalBanks members do just that. The best part, though, is that online account opening is possible not just for individuals, but also for local and foreign companies, structures, and even foundations.
Client Types Eligible for Online Panamanian Bank Accounts
- Panama Offshore Companies
- Panama Foundations
- Foreign Companies (EU, Asia, North America, etc)
- Offshore Companies (BVI, Bahamas, Cayman, Belize, Nevis, etc)
- Investment Vehicles (Trusts, Foundations, Funds, etc)
Your ability to open an online bank account in Panama isn’t guaranteed. Bank compliance here is intense. Applicants need to prove to the bank that they are worth dealing with and won’t cause compliance headaches.
It’s important to note that not all banks in Panama handle the banking demands of international clients. Sometimes it’s difficult to find reliable English-language customer support. Some banks won’t even let you make international transfers online. This means you have to physically go into the branch every time you want to send money abroad.
Keeping this in mind, let’s now take a quick look at some of the challenges non-residents face when applying to open an online bank account in Panama.
What Are the Challenges of Opening Panamanian Accounts Online?
Like many countries, non-residents face a few obstacles and inconveniences when trying to apply for accounts online. Banking in Panama (post-Panama Papers) is often bureaucratic and time-consuming. Compliance is heavy and difficult to navigate.
Most people give up out of sheer frustration. This is usually because they chose the wrong banks or dealt with the wrong bankers and in most cases, they didn’t have the right information going in.
Here are three common challenges non-residents face when opening a Panamanian bank account online.
Account Opening Paperwork Requirements
Opening an online bank account in Panama requires a lot of documentation. Unfortunately, this isn’t something you avoid by showing up in person. It’s just the nature of banking in Panama after the Panama Papers.
It is however possible to expedite and streamline the process dramatically. You just need to work with the right banker and confirm the requirements beforehand.
Certification Requirements for Opening Panamanian Accounts Remotely
Anyone planning on opening accounts for a foreign or offshore company needs to provide certified documents for everything. Unfortunately, this is often expensive.
Most applicants are asked to get documents certified by the local notary in the country where their company is registered. Some banks also require those documents to be couriered to the bank. Other banks have different authentication requirements for different types of paperwork.
Getting everything properly certified or authenticated on your first attempt can save you a few hundred dollars. If you do it incorrectly, or your banker gave you incorrect information the first time (which happens), you’ll have to go through the process again and do a second mailing.
Bottom line, knowing the requirements and doing things correctly the first time around, saves you a lot of time and money, especially when you’re trying to open a Panama bank account online.
Responsiveness of Panama Bankers When Applying for Accounts Online
Finally, and most importantly, it is difficult to find attentive and competent bankers to help you open accounts. This might seem counterintuitive, but it’s similar to what you’ll find in other banking hubs around the region.
Solving this is done by getting in direct contact with a reliable and experienced banker. Someone who’s going to take your application seriously and respond to your email or pick up the phone when you call.
This means finding a banker who speaks your language, understands your business, and sees you as a profitable client. They also need to be willing to deal with a picky foreigner.
Frequently Asked Panama Banking Questions
Below are a few of the most common questions that we receive from people exploring how to open a Panama bank account online. If you have any further questions, don’t hesitate to get in touch with us directly.
Can a Non-Resident Open a Panama Bank Account?
Yes, a non-resident can open a bank account in Panama as long as they meet the bank’s account opening requirements and have a suitable client profile. The banks available to you depend on your citizenship, residency, banking needs, and deposit level. Bank selection is an important factor to consider when choosing where to open a bank account in Panama as a non-resident.
Can I Open an Account Online Without Going to the Bank?
Yes, you can open bank accounts online without going to the bank as long as you choose a bank that offers remote account opening. That said, not all banks that offer online opening are suitable options for foreigners. It’s important to choose banks that meet your requirements and serve your banking needs, in addition to allowing online opening.
How to Open a Bank Account in Panama from the USA?
How you open a bank account in Panama from the USA will depend on your client profile. More specifically, the type of account you want to open, your desired deposit level, and the reason for the account. Generally, Americans who apply online are asked to provide proof of identification, proof of address, proof of income, bank reference letters, and other supporting documents.
Do You Want Help Opening Bank Accounts?
If so, you can access GlobalBanks IQ and start the process of applying for a bank account in a few clicks.
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