Panama is a Latin American country that has been the center of regional banking for more than thirty years, and it is steadily gaining more and more popularity with entrepreneurs, investors, and potential expats from all over the globe.
The country’s economy is showing stable growth and the opportunities for businesses are expanding, which explains why it has become a point of attraction for foreigners wishing to use its really good financial services.
If you make some research, you will find about 80 international banks in the country. These are major institutions offering current and deposit accounts to non-resident clients.
Panamanian non-resident accounts guarantee that your funds will be safe as the local laws protect them just as reliably as those of Panama’s residents. You can read more on opening a Panama bank account on our portal or even choose an expert who will help you with the hassle-free opening.
Why do people decide to open a bank account in a faraway country?
The reason is that the legal framework of countries may be more or less beneficial, but it may change over time. For example, the state where you are based may adopt a law that will mean raising taxes, less banking secrecy, or more stringent governmental control over the savings of businesses or individuals. State budget deficits may be covered by different assets, and people naturally seek to preserve them in the best way possible.
An account with a Panama bank will give you the security you are looking for, along with great diversification opportunities. You will easily convert your funds into different types of assets, thus shielding yourself against the claims that may be filed by your creditors or even relatives.
An asset stronghold in Panama, in fact, looks like this:
- You register a bank account in the country
- You establish a Panama corporation to conduct your business operations
- You set up a trust or a private interest foundation in Panama
And that is the most powerful contribution to your safety you could think of, which implies that no one will get to you and all of your funds and operations will be perfectly safe – if you comply with Panamanian laws, of course.
What is the procedure for opening a bank account with a Panamanian bank?
This is quite easy from a technical point of view as Panamanian banks are much less stringent on choosing non-resident customers than, for example, European ones.
The list of documents may differ from bank to bank, and so may the required minimum deposit amount.
Can I open an account remotely?
Yes, you can, but you will need to do so via a local agent. KYC (Know Your Customer) rules require a personal presence of a person for whom the account is opened. However, if you are unwilling to travel to Panama just to open an account, we can help you open it remotely as we have a partnership arrangement with several good banks that allows us to do so. Follow the link above to consult an expert and start the account opening procedure today.
It will take you two to three weeks to open an account if all your documents are in order and the bank does not request any additional ones.
If you are interested in a Panamanian residence permit, a bank account is a less expensive step to it than an official procedure: in the second case, you will have to make a bank deposit that considerably exceeds the cost of just opening a bank account in Panama. It does not mean that a resident status will be granted to you automatically after opening an account, but it will still be easier for you to get it.
Panamanian bank protection in case of a financial crisis
Panamanian banks are, of course, interested in attracting customers from all over the world, so they take care of customer safety by offering guarantees in case of bank failure:
- Better capitalization in offshore Panama banks minimizes the risks if the economic situation gets worse.
- Panama’s currency is the US dollar, which reduces the risks related to currency exchange rate fluctuation.
- If you make a deposit, the accrued interest will be charged on the principal amount, which makes it less prone to inflation.
- Panama banks offer their clients multi-currency accounts to diversify their assets and thus ensure more safety.
Panama’s legal framework will effectively protect you against lawsuits
If you are afraid of the instant freezing of your accounts, you should know that it is almost impossible in Panama! The decision of a foreign court will not be accepted by a local court, so your creditors and relatives will have a hard time getting to you. Forced withdrawal of funds following the ruling of a foreign court is unbelievable.
Of course, there are cases when local authorities have to pay attention to your funds, like strong evidence of criminal offenses or the need to divide property after a divorce. Otherwise, this is a much safer option than keeping your funds in a local bank only.
In a word, you can open a Panama account to enjoy more freedom
When you diversify risks, you get more freedom, and this is a maxim. You can open an account in a foreign bank to feel that your eggs are not stored in one basket and that the government of your country will not control your assets entirely. If you need to transfer money quickly, for example, it is always good to have at least two ways to do that in case one of them fails.
You can also obtain an international payment card from a Panamanian bank and enjoy all the safety it gives, as well as free access to goods and services around the world. If one of the cards you have is blocked, you should have another one.
No matter where you live and how good your local banks may be, we can say by paraphrasing King Solomon “and it may pass.” You should always have more than one friend to rely on, and a Panama bank can become a good financial friend of yours.