February 2023

10 Frequently Asked Questions About the

Banking System in Panama

1. Why open a bank account (or a brokerage account) in Panama?

• The agency Moody's has raised the credit rating of sovereigns in Panama's
debt to Baa3, which places it in the investment grade, thanks to the
improvement in fiscal and debt position of the country.
• The official currency of Panama is the US Dollar, which has been in circulation
without any exchange control since 1904.
• Panama has not suffered a financial crisis in its 115 years of life. In fact, only
one bank has gone bankrupt since the birth of the banking system, Banco
Disa.
• Panama is widely recognized as one of the best offshore banking jurisdictions
in the world, with one of the most reliable financial centers in the world.
• Panama has one of the most stable governments and economies in all Latin
America. Besides, the official Language is Spanish, although English is widely
spoken.
• Panama regulators are strong, but not dominant. And while
compliance with opening a bank account in Panama may not be easy
to navigate, but with the correct help and approach to arrive with
banks, this is not a problem.

2. Are the updated bank credit ratings posted on the website to keep the
public informed?
Based on the regulation, banks are obliged to have a rating issued by a Risk
Rating Agency, which has to be published by the bank in a newspaper with
national circulation, and a copy must be placed in a place accessible to the public
in all of the bank’s establishments for the entire year.

3. Is there Bank Secrecy in Panama?

Panama still has strict laws to keep bank secrecy in revealing who are the
shareholders and signatories of the accounts. On the other hand, it is important
to mention that Panama has signed agreements with foreign countries for the
exchange of tax information, FATCA and CRS. Although these agreements allow
the exchange of information, it will only be carried out under the strictest security
measures.

4. How long does it take to open a bank account in Panama?

Banks are open Monday through Friday from 8:30 am to 3 pm and on Saturday
8:30 am to Noon. The time required to open a bank account depends for the most
part on the bank, and it can take up to 30 business days, but usually around two
weeks if all the bank requirements are fulfilled. Time also depends on you to
deliver all the necessary documents and the type of account. Nonetheless, with
the correct assitance and advisory you could open an account even in a
couple of hours or maximum two days.

Document prepared by OLDEMAR SOTO LOMBARDO

 February 2023

5. Is it difficult to open an account in Panama?

Banking in Panama can be harder or easier, depending on which of these
categories you fall into:
• Permanent resident with a Panama ID card (cedula)
• Expat (not an American) without a cedula
• American (with or without a cedula).
The first group will make the process the least complicated. A cedula simplifies
several bureaucratic tasks in Panama. Migrants or Expats who don’t have a cedula
are treated with more caution. However, being a member of the third category
often causes the entire procedure to become very difficult. In fact, a number of
local banks in Panama do not readily open accounts for Americans and some will
have special regulations in place for European customers too. However, US
citizens can of course open accounts, but not in every bank. Therefore, it is
preferable to have a person who takes you by the hand during the whole
process if you are not very familiar with the country, its practices and
the operation of the Panamanian financial system.

6. Which are the best banks to open an account in Panama?

That depends on the type of account you intend to open, and the use that will be
given to the account. There are banks that are focused exclusively on high-
networth individuals and others that are interested primarily in medium and small
clients. Besides, in order to ease the opening, it is better to investigate in the
bank its position regarding the source of income from your country of origin,
because the requirements and paperwork could vary. However, an adviser can
help you with that information. This person, who does not have to be a
lawyer, can assist you during the account opening procedure because he
is familiar with the requirements, and surely can help you with the
follow-up once the client complies with the bank interview and due
diligence requirements, expediting the whole process.

7. Is it necessary to come personally to a bank to open an account?

According to regulations, all bankers in Panama are required to know their clients
very well; for this reason, it would be advisable for the client (the bank account
signatory) to come personally for a brief interview with the bank and sign the
bank application forms. Nevertheless, some of the banks we can refer could
accept receiving the account application via email, wave the personal
meeting requirement and arrange a virtual meeting.

8. Can I manage my bank account from abroad?

Managing your bank account in Panama from abroad is very simple, banks will
give you access to your online banking platform from which you can make any
movement of local or international funds you want and you can access your
information at any time. In addition to online banking, many of the Panamanian
banks offer free mobile App for both Android and Apple, where you can manage
everything from your cell phone. Finally, bigger Banks will have the option of
requesting a debit card with which you can withdraw money from ATMs almost
anywhere in the world.

Document prepared by OLDEMAR SOTO LOMBARDO

 February 2023

9. Which are the basic Requirements to open a bank account?

Individual: Banks will ask for passport and official ID documentation (sometimes
even two forms of official identification with your photograph), personal bank
references (from your banking in any country), commercial references (example,
attorney, accountant, clients). A letter of reference from your current bank
addressed to the bank where you want to open an account; In some cases, a “To
Whom it May Concern” will not sufficient;

Corporate: Additionally to the standard corporate documents and signing the

account opening forms. Banks will ask for passport and official ID documentation
(sometimes even two forms of official identification with your photograph),
personal bank references (from your banking in any country), commercial
references (example, attorney, accountant, clients).

Additionally: banks would also ask for statements or documents to prove the
sources of the incoming funds, and/or proof of source of income thru your most
recent tax return. Secondly, if you are residing in Panama on an immigration visa,
you will need to provide copies of the immigration visa and immigration identity
card (carnet); and thirdly, they will also ask you to complete a W-9 form so they
have your U.S. social security number on file, for FATCA purposes. Most banks
require a minimum deposit ranging from $150 to $300.However, if you decide to
open an account in a premium segment this initial deposit could be as high as
$10,000.00. Once the account is opened you can make deposits with cash, local
or foreign checks, and bank wires.

Nonetheless, sometimes the bank’s compliance departments might

request additional information or documents if they consider it
necessary; in this case, if you are no longer present in Panama, your
advisor could assist you in filing the additional documents or information
to the bank if required.

10.What are the basic elements for considering an account inactive (or
dormant) in Panama?
• The holder has not made any deposits or withdrawals in the past five (5)
consecutive years, exclusive of the deposit of paid interest.
• The accounts belong to persons whose whereabouts are unknown.
• The bank has made verified, reasonable attempts to locate the beneficial
owners of the account.

Document prepared by OLDEMAR SOTO LOMBARDO

 February 2023

Last Few Tips

1. Prepare your documents and funds well in advance: getting financial

institutions to process documents can take more time than expected.
2. Make sure your taxes are up to date: Panama is not a tax haven anymore
(FATCA); check with your accountant that you have no withstanding taxes, or
audits from your tax administrators.
3. Start building credit in Panama: This will give you lots of flexibility for small
business loans, mortgages, and automobile loans. You can start this process as
soon as your bank account is approved; whether you’re physically in the
country or not.
4. Pick the right bank: With over 100 different banks operating out of Panama,
finding the right one is not only important; it’s a bit of a challenge. Find a small
and reliable bank that offer great interest rates as an incentive to increase
business. Besides, they usually offer a better service.
5. If you make cash deposits or withdrawals greater than $ 10,000 the bank will
request additional information.
6. Invest in the local Security Market
7. And Get Advise

Oldemar Soto Lombardo

Email: oldemarsoto27@gmail.com
Cell: (507)-6618-9991
Advisory for loans, mortgages, bank and investment accounts.

Document prepared by OLDEMAR SOTO LOMBARDO