Offshore Banking in Panama

Whether you are trying to protect $50,000 or $50,000,000 you need to select a good place for your offshore bank account.  Panama has several advantages over other jurisdictions.

Privacy - Bank Privacy in Panama

Bank privacy laws are unparalleled in any other jurisdiction.  More importantly, they are enforced.  Enforcement is just as important as the law itself.  This is often overlooked when people are selecting an offshore jurisdiction.  Sadly, only insiders really know what jurisdictions enforce their privacy laws.  Experience has taught us that Panama is your best option for opening an offshore bank account.

Do I need an offshore company or will a personal bank account get the job done?

Although it is possible to open a personal bank account in Panama it is inadvisable for a couple reasons:

1. Many countries require their residents to report personal bank accounts worldwide.
2. Wires going to or coming from your personal bank account will have your name on them.  This will compromise the very privacy most people are expecting from a jurisdictions like Panama.

Panama Financial Stability

If you ask a Panama bank manager how they fared with respect to the sub-prime mortgage scandal, they will immediately pull out their Spanish-English dictionary.  They don't even know what sub-prime means.  Panama banks are very conservative.  They have never even considered such crazy mortgages.  In fact, they have never even considered a 10% or 5% down mortgage.  Instead they have the same requirements they have always had.  25% down if you are a resident of Panama and 30% otherwise. 

How stable are Panama banks?

Panama banks do not invest in foreign real estate.  If you try to get a mortgage for a foreign property, you will not get it.  Panama banks only make real estate loans for Panama property.  They are not exposed to the decline in property values seen elsewhere.  Panama is currently in an economic boom due to the massive Panama canal expansion project.  The first Canal took France 8 years and the USA 11 years making the total project length 19 years.  The expansion project involves building a second canal next to the first one.  With today's technology they estimate it will take 10 years to complete.  The building of the Canal is a huge financial stimulis to the Panama economy.  This income will double upon the completion of the Canal.  In addtion, the operation of the Canal is hugely profitable for Panama as ships pay upwards of $500,000 each to pass through the Canal.  The current Canal operates 24 hours a day 7 days a week.  From this writer's condo on the Ocean, you can see the ships lined up, sometimes 30 at a time waiting to go through the Canal.  There is no shortage of demand for passage through the Canal.

Panama Bank Account Interest Rates Offshore

Interest rates in Panama are competitive with onshore rates and sometimes better.  One bank in Panama is currently paying almost 7% interest.  This bank also happens to be the bank that most customers rate as having the best customer service.  They also have very low bank fees comparable to onshore.  In comparison, there is a large bank in Panama (Hxxx) charging $900 per year for online banking.  (which is a free service at all the other banks we offer)