Opening a Bank Account in Panama By: Roberto Bell

Panama is not only famous to travelers. It is also a favorite among businessmen because of its confidentiality clause. Unwilling to rest on its laurels, Panama continues to break new grounds in enhancing its image as the offshore financial center of choice.

One of the components of Panama's thrusts is encourage offshore banking. To encourage movement of funds and capital to Panama, this country has tightened its regulations by passing a new and comprehensive banking law that ensures conformity with safe and secure banking protocols across Europe and America.

In line with this, a Superintendency was established to oversee and study Panama's banking systems. The Superintendency is in charge of ensuring that the banks currently existing conform to established banking regulations and procedures. It is also in charge of making sure that the banks it issues licenses to will be engaged in fully legal transactions and are not going to abuse these licenses. The Superintendency has five Directors to see to the policies of and execute necessary changes to the Panamanian banking system.

The impact of tightened controls and regulations in the Panamanian banking system is felt most by those who have set up panama offshore corporations. On the one hand, more restrictions generally mean less appeal to bank account owners. But then, more stringent controls also mean more security. You would just have to weigh the pros and cons before you open a bank account in Panama. If you decide to open a corporate bank account, exactly what is required and what are the rules you should follow?

Documentation is of course a necessary banking protocol. If you wish to open a Panama corporate bank account, you would have to present a notarized copy of your passport if you are the owner or one of the signatories of the account. You should be able to provide the bank with your and other signatories? bio data. You must also present two certifications or references from banks with which you have a long standing relationship (minimum of 2 years). These references from your local bank should divulge how long you have been banking with them and if your account with them is valid and in good standing.

Since you are opening a corporate account, you must also briefly describe your business and what the account is going to be for. You must be able to demonstrate where the funds going into your account will be coming from and through what means they are generated. You must also show why you wish to open an account, particularly in Panama, and you should also be able to provide a ballpark figure of the volume of funds that the bank account is expected to handle. This control is especially crucial to banks in the new tightened regulatory setup because Panama wishes to avoid illegal funds transfer, especially money laundering activities, in the country.