Offshore Banks in Panama Compared

Although Panama has some 90 licensed banks located here in Panama City, only 5 banks meet our minimum criteria.  All the banks we offer to our clients have the following:

1. Large Stable banks-- The Banks we offer come in two varieties.  Multinational banks with between 20 - 50 billion in assets under management, or local banks that do not exist outside of Panama with between 400-900 million in assets under management.  All the banks we offer are NOT the small banks like some of our competitors offer (that are typically just located in a suite rented in an office building).  The banks we offer are large with many locations throughout Panama City.
   
   
2. Online banking with the ability to send and receive wires-- Even though Panama is considered the largest banking center in Central America, many banks do not allow customers to send an receive wires via their online banking interface.  One bank even charges $900 per year for online banking (highway robbery ! ).  Another bank we know of requires customers send a fedex of their wire instructions, notarized and apostilled.  Such requirements are not realistic or convenient for offshore banking.  Our customers require the ability to send and receive wires via online banking since it is impractical for them to come into the bank regularly to initiate the wire personally.
   
   
3. Anonymous visa and debit cards that do not trace back to the individual-- Banking offshore in a strong privacy jurisdiction like Panama means your identity can remain private.  It is very important to open a corporate bank account instead of a personal bank account.  A personal bank account is cheaper, but it does not protect your privacy since all wires going in and coming out of the account will be in the signatory's (your) personal name.  For anyone interested in privacy, a personal bank account will not suffice. 
   
   
4.  Customer service-- Customer service is all over the map in Panama.  Some banks have amazing customer service with good english skills while other banks (some well known) do not respond to customers inquiries in any meaningful way unless they come into the branch.  Whats worse, is that it is not immediately apparent which banks have good customer service.  If you are considering banking offshore in Panama it is very important you select a bank with good customer service.  We cannot name banks on the website.  Please call for details.
   
   
5. Fast Account openings -- Most law firms are discovering that it is taking 1 or 2 weeks to open a bank account now, as Panama's National Banking Commission (NBC) has increased requirements for opening bank accounts.  In an effort to crack down on money laundering, the NBC now requires all foundation accounts to go through the bank's compliance department before the account is opened.  Now more than ever, relationship with the bank has a direct impact on how long it takes to open a bank account in Panama.  Fortunately, because we screen our clients, and only take good quality clients to the bank, we have a great reputation with several of the top banks in Panama.  In fact, we are the only law firm that we are aware of that can actually deliver a Panama bank account with one of the largest banks in Panama in just one day!
   
   
6. Low fees-- One of the banks we offer charges very low fees for wires, use of the debit or credit card, etc.  This bank also happens to have very good customer service and the best interest rate on term deposits.  Whenever we send a customer to this bank they always come away happy which means referrals and more business for our law firm in the long run.  We are now able to open bank accounts with this bank in 24 hours! 
   
   
7. Panama banks are flush with cash-- More than ever, people are realizing that a Panama bank account is a good tool to have in your financial treasure chest.  With so many despositors and such large a cash influx, Panama banks have become increasingly picky about the clients they accept.  In fact just last week one bank announced it will no longer open bank accounts for foundations.  One other bank charges $900 per year for online banking.  These types of banks are not good news for people wishing to bank offshore in Panama.  Of course, we can help you select a good bank that does not engage in the previously mentioned practices.  Call for details.
   
   
8. Low Risk Investments-- Panama is home to many opportunities not available in North America.  As the banking hub of central america, Panama has access to investments which earn a much higher rate of return than their onshore counterparts.  It is possible to invest money in several central american banks that pay over 14% interest.  Call for details.

Higher deposit requirements for the better Panama Banks

The "too good to be true" rule applies in Panama as much as anywhere else in the world.  As a rule of thumb, we have found that the banks with a lower initial deposit requirement give customers poor to down right horrible customer service.  They often promise english service, but if your inquiry is anything more than trivial, you will need to speak with someone higher up who likely doesn't speak english.  Often the meaning of your request is lost in the translation, or the answer doesn't seem to relate to the question asked.  (Yes this author has suffered at the hands of a few of these banks, but the good news is you can benefit from my findings.)   English speaking employees in Panama come at a premium (roughly double the pay).  To save costs some banks only provide 1 or 2 english speaking service reps in the whole bank.  On the other hand the better banks tend to require a 3000 to 10,000 initial deposit.  These banks can afford to insist on these requirements because they are in much higher demand because people get to know who has better service and and better banking products.  Also the banking fees are much lower in the better banks. (particularly in the bank that requires a 10k initial deposit).

The Wire Skimming Scam !

Some banks in Panama now take a percentage of all wires (incoming and outgoing).  This is a little known fact.  One well known bank promoted by one of our competitors, charges as much as $1500 per wire !  Often the customer doesn't find out until he notices a large discrepancy between the amount sent and the amount recieved.  Of course this policy is all spelled out in the fine print so its completely legal.  To us this is a scam.  Avoid these banks.  Call for details.

International vs Local Panama Banks 

We offer both international banks with locations all around the world and we also offer banks who only exist in Panama.  The largest banks are the international banks while the local Panama banks are much smaller.  The local Panama banks we offer typically have about 400 million to 1 billion in assets.  The international banks typically have between 20 and 50 billion in assets.  Some feel this larger asset base comes at a price, because the bank may have an onshore presence.  Although this risk cannot be completely mitigated, it is very important to realize that Panama banks, because of bank secrecy laws, are completely separate from their counterparts with the same name elsewhere in the world.  The best way to figure out which bank is best for you is to call us and we can ask you a series of questions that will help you decide which bank best suites you.