In this article, we’re sharing the truth about the Panama banking secrecy laws and how opening bank accounts and tapping into asset management solutions and banking services outside of your home country can provide a level of protection.
This article is part of our free series on Panama banking services. 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 the banking secrecy in Panama.
Table of Contents
- Panama Banking Secrecy
- Frequently Asked Panama Banking Questions
- Do You Want to Open a Panama Bank Account?
Panama Banking Secrecy
Panama banking secrecy laws are designed to protect the privacy of account holders by maintaining strict confidentiality, where account information is kept secret. This type of secrecy no longer exists in Panama.
Recent global banking standards, such as the Common Reporting Standard (CRS), have shifted Panama’s banking sector. This global initiative has created transparency in Panama’s financial practices.
Depending on your country of citizenship and residency, you may be required to report any accounts held in Panama. Likewise, banks offering banking solutions and financial services in Panama may be required to disclose your account information to other countries. This is often a requirement of information-sharing agreements that Panama participates in, including CRS, AEOI, and FATCA.
Banking in Panama can still offer a layer of privacy even though banking secrecy may not exist the way it used to. Certain individuals and businesses can still protect their savings from extortion, criminals, and corrupt politicians from banking outside of their home country, whether in Panama or elsewhere.
Not all banks in Panama managed by the Superintendency of Banks in Panama, Panama’s banking regulator, are going to be suitable for your client profile. It’s important to choose banks that are stable, financially sound, well-managed, and accept similar client types.
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.
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Frequently Asked Panama Banking Questions
Below are a few of the most common questions we receive from people exploring Panama’s banking secrecy. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Does Panama Have Bank Secrecy?
Panama does not have bank secrecy in the traditional sense. However, Panama law does penalize anyone who shares information about accounts or account holders with unauthorized parties. That said, the penalties typically involve fines and are not severe when compared to other jurisdictions that mandate criminal charges for similar cases.
Is Panama Really a Tax Haven?
No, Panama is not really a tax haven. Panama is a territorial tax jurisdiction. The tax system in Panama taxes locally sourced income, meaning you only have to pay taxes on the income earned in Panama. Other territorial tax jurisdictions include Singapore, Hong Kong, Gibraltar, Costa Rica, and Malaysia.
Do Panama Banks Report to 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 in accordance with the Foreign Account Tax Compliance Act (FATCA).
Do You Want to Open a Panama Bank Account?
If so, you can access GlobalBanks IQ and start the process of applying in Panama in a few clicks.
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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!