In this article, we’re exploring the banking and financial services that individuals and companies can access after having their account application approved for opening a Panama bank account from abroad.
This will include an overview of the available services offered by Panama banks, the services Panama banks do not offer, and a comparison between Panama and other offshore banking jurisdictions.
The insights shared below are based on our team’s experience banking in the Republic of Panama as well as helping our premium members successfully open (and benefit from) Panama bank accounts 100% remotely.
If you would like access to our free country guide and complete series on banking in Panama, use the link above to unlock access now.
Alternatively, keep reading to learn more about the banking and financial services that you can access as a foreign non-resident when banking in one of Central America’s most popular banking jurisdictions.
Table of Contents
- Panama Banking Services
- What Banking Services Are Available in Panama?
- What Banking Services Are Not Available in Panama?
- How Does Panama Compare to Other Jurisdictions?
- Benefits of Panama Banks
- Frequently Asked Panama Banking Questions
- Do You Want Help Opening a Panama Bank Account?
Panama Banking and Financial Services
Panama banking and financial services cover personal retail banking, local business banking, offshore banking for individuals and entities, payment cards, credit facilities, banking for trusts and foundations, private banking and wealth management, and investment banking.
That said, depending on which of the financial groups, including the list of 55 Panama banks you decide to open an account with, the specific services you will be able to access in Panama will differ.
Not surprisingly, those banks with an International License will offer services tailored to non-residents of Panama while the major banking corporations, including the larger banks in Panama with a General License, are more likely to serve Panama residents and Panamanian citizens.
In the following sections, we will take a closer look at the specific services foreigners, non-residents, and foreign entities can access in Panama. But, as a quick recap, here is a list of the Panama banking and financial services most customers can look for when banking in the country.
Panama Banking and Financial Services
- Personal retail banking
- Local business banking
- Offshore banking for individuals
- Offshore banking for entities
- Payment cards
- Credit facilities
- Banking for trusts and foundations
- Private banking and wealth management
- Investment banking
What Banking Services Are Available in Panama?
Panama banks tend to offer basic banking and investment services compared to other international banking jurisdictions. With this in mind, the Panamanian banks that open for foreign non-resident individuals and entities are often suited to anyone getting started in the cross-border banking world and are interested in opening an offshore bank account in Panama because they are struggling to open accounts anywhere.
Additionally, Panama banks may be a suitable option for anyone looking for offshore banking with exposure to USD, which is the currency used in Panama alongside the Panamanian balboa.
That said, the specific services that each Panamanian bank offers will vary widely. So, if you are looking to bank in Panama in order to access specific services, you should confirm that these services will be available to you before applying for an account.
To help you better understand which banking services you can access in Panama, we’ll break down the services that non-resident individuals, businesses, and entities can unlock in the country.
We’ll also review a few of the non-banking and financial services that Panama has to offer, which are important for anyone considering Panamanian residency, Panama real estate investments, or starting a business in Panama.
Foreign Non-Resident Banking Services in Panama
The banking and financial services that foreign non-resident individuals can access in Panama include:
- Basic checking accounts
- High-yield savings accounts
- Fixed-term deposits
- Domestic transfers
- International transfers
- International debit cards
- International credit cards
- Non-resident mortgages
- Safe deposit boxes
If you would like to access these services, you can start by reviewing our guide on individual banking services and opening a personal bank account in Panama by clicking here.
Panama Business Banking Services
The banking and financial services that foreign non-resident businesses can access in Panama include:
- Business checking accounts
- Fixed-term deposits
- Domestic transfers
- International transfers
- International debit cards
- International credit cards
- Safe deposit boxes
If you would like to access these business banking services, you can start by reviewing our guide on the business account options available through opening a business bank account in Panama by clicking here.
Panama Private Banking Services
The private banking and wealth management services that foreign non-residents can access in Panama include:
- Fixed-term deposits
- International investment accounts
- Special savings plans and accounts
- Accounts for trusts and foundations
If you would like to access these private banking services, you can start by reviewing our guide on specialized accounts offered by private bank accounts in Panama by clicking here.
Panama Non-Banking & Financial Services
Panama is synonymous with offshore services and offshore legal structures, thanks in large part to the Panama papers. And, while much of Panama’s reputation is overdone by the media, it is true that Panama has a large number of legal and financial professionals ready to help you with your offshore requirements.
With this in mind, here is a look at the non-banking and financial services that you can access through Panamanian service providers.
- Corporate structuring of Panamanian companies
- Structuring of Panamanian foundations
- Nominee director services
- Accounting and professional services
- Panama residency and citizenship services
Importantly, the level of service, communication, and competency can vary widely in Panama when it comes to Panamanian service providers. So, it’s important to seek out Panamanian firms that specialize in your area of interest and have reviews from trusted sources.
Which Banking Services Are Not Available in Panama?
While Panama is an offshore banking hub, there are limits on the services that you can access in the country. Also, as mentioned above, Panama is best placed to serve anyone getting started in the offshore banking world or struggling to open elsewhere.
With this in mind, Panamanian banks and the services they offer, are not suitable for anyone seeking sophisticated investments, complicated offshore structuring, and cross-border transfers with a wide range of jurisdictions as explained below.
Sophisticated Banking & Financial Services
As mentioned, Panama typically caters to individuals getting started in the offshore banking world. Accounts can be opened with USD 10,000 from abroad and even less when opening in person. In most cases, individuals and entities looking to bank in Panama are seeking a basic bank account.
Yes, it is possible to open accounts that require higher deposits and it is possible to access private banking services in the country. However, if you plan on making the necessary deposit to access these services, you will also be able to access a wide range of international banking jurisdictions that specialize in private banking and wealth management.
Support for Cross-Border Transactions
Panama is one of the only jurisdictions to be listed by the Financial Action Task Force (FATF), the European Union (EU), and the United Kingdom (UK), on their respective watchlists. In other words, Panama is a blacklisted (or grey-listed) jurisdiction.
While this does not necessarily impact opening bank accounts, it does mean that banking in Panama may be a higher risk for individuals transacting with these countries. It’s important to understand these regulatory scrutiny issues and other risks of banking in Panama your client profile may be inclined to experience.
In short, transactions in and out of the country to these jurisdictions can result in additional scrutiny, compliance checks, and requests for supporting documents.
So, if you are looking for a secure transfer method to send money to (and from) Panama on a regular basis to any of the countries that closely adhere to the FATF, EU, or UK watchlists, this may make banking in Panama a challenge for you.
How Does Panama Compare to Other Jurisdictions?
Compared to other international banking jurisdictions, Panama falls in the middle of both available services and quality. Additionally, the service fees and costs for banking in Panama are not as high as in certain countries, but accessing banking and financial services here can be expensive.
In this section, we will share which banking and financial services are worth exploring in Panama, which clients may benefit from banking in Panama, and which jurisdictions may be better suited to certain client profiles.
How Does Panama Compare Regionally?
Panama is significantly better placed to serve foreign non-resident individuals and entities than other offshore jurisdictions in Central America. This is especially true when you consider the safety of Panama banks and the stability of Panama’s correspondent bank relationships.
That said, when compared to more established banking hubs in the Caribbean like the Cayman Islands, Panama does not offer the same level of sophistication. Though, banking in more sophisticated jurisdictions often requires significantly higher deposits and is much more difficult to access than Panama.
Which Services Should You Consider in Panama?
With this in mind, Panama is well-positioned to offer banking and financial services to individuals and companies that are looking for basic offshore banking. This includes both personal and offshore banking, and extends to basic investment accounts.
This is particularly true for foreign non-residents from the wider Latin American region, especially those looking for a stable banking jurisdiction, access to the physical currency, the United States Dollar (Panama’s official currency), and a stable jurisdiction both economically and politically.
Benefits of Panama Banks
In short, the benefits of opening and maintaining an account with Panamanian banks will depend on your client profile, desired deposit level, expected transaction activities, and your reasons for wanting to bank in Panama.
That said, here is an overview of the general account perks and benefits of banking in Panama most non-residents can unlock.
Benefits of Opening With Panama Banks
- Low initial deposits of USD 10,000
- Remote account opening for most clients
- Accepting of most citizenships and residencies
- Accessible offshore and backup bank accounts
Benefits of Banking in Panama
- Strong correspondent bank relationships
- Stable political environment
- Stable economic environment
- Access to International Banks from Europe
These are just a few of the general benefits that you can access when opening bank accounts with the top-rated financial institutions and the best banks in Panama. In order to understand the specific benefits for your client type, use the free Panama banking guides linked above.
Frequently Asked Panama Banking Questions
Below are a few questions we receive from people exploring the banking services in Panama. If you have further questions you would like answered about Panama banking don’t hesitate to get in touch with us directly.
Are There Any American Banks in Panama?
Yes, there are American banks in Panama. In fact, both JP Morgan Chase and Citibank have operations in Panama. However, JP Morgan only operates a representative office while Citibank does have a General Banking License. That said, both JP Morgan and Citibank cater to commercial, financial, and government clients. In other words, they are not banking options for most individuals or businesses.
Can an American Open a Bank Account in Panama?
Yes, an American can open a bank account in Panama as long as they meet the foreign account policies and the account opening requirements and have a suitable client profile. That said, most Americans can open Panama bank accounts 100% remotely. This is true for both personal and business bank accounts. If you would like to explore your options, you can get started with GlobalBanks IQ right now.
Do Panamanian Banks Report to the IRS?
Yes, Panamanian banks report to the IRS. In fact, 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). That said, it is still possible for US persons to open bank accounts in Panama (and elsewhere) as long as they comply with reporting requirements.
What US Banks Operate in Panama?
The US banks that operate in Panama include Citibank and JP Morgan. However, both Citi and JP Morgan are commercial banks and do not offer their services to individuals or businesses. With this in mind, if you are looking to open a Panama bank, you will need to choose from one of the other options available, which we explain above.
Ready to Open an Offshore Bank Account?
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