Banking in Panama

History

In the 16th century, the Spanish Empire conquered the native tribes of Panama. Rodrigo de Bastidas, sailing westward from Venezuela in 1501 in search of gold, was the first European to explore Panama. Subsequently, Panama was under Spanish rule for 300 years. In 1671, the English government-licensed privateer Henry Morgan sacked and burned the city of Panama. In 1744, Bishop Francisco Javier de Luna Victoria DeCastro established the College of San Ignacio de Loyola and, on June 3, 1749, founded La Real y Pontificia Universidad de San Javier. By then, however, Panama's importance and influence had become insignificant as Spain's power dwindled in Europe, and advances in navigation techniques increasingly allowed ships to round Cape Horn to reach the Pacific. In the first eighty years after independence from Spain, Panama was a department of Colombia after voluntarily joining it at the end of 1821. The people of the isthmus made several attempts to secede and came close to success in 1831 and again during the Thousand Days' War of 1899–1902. When the Senate of Colombia rejected the Hay–Herrán Treaty, the United States supported the Panamanian independence movement. In November 1903, Panama proclaimed its independence. Today, Panama is regarded as Latin America's financial center and one of the world's major financial centers.

Banking Institutions

Panama has over 220 commercial banks, 37 authorized custodians, and numerous licensed money service businesses. The National Banking Commission is the regulator of banking activity in Panama, governed by the law of “Superintendencia de Bancos Panamá”. Panama is widely regarded as one of the world's leading financial centers. Panama's banking industry is seen as one of the most stable, secure, and high-quality banking jurisdictions worldwide.

Laws and Regulations

The National Banking Commission of Panama is responsible for all regulatory oversight in Panama.  Various NBC departments hold regulatory mandates to oversee the activities of domestic banks, foreign banks, financial services firms, and other financial institutions. The Superintendencia de Bancos de Panamá supervises Treasury Operations, Accounts and Management Information, and Foreign Exchange transactions. The political landscape is dominated by two major parties and many smaller parties, many of which are driven more by individual leaders than by ideology. The United States cooperates with the Panamanian government in promoting economic, political, security, and social development through U.S. and international agencies. Cultural ties between the two countries are strong, and many Panamanians come to the United States for higher education and advanced training.

Bank Secrecy

Panama is ranked at 11th position on the 2014 Financial Secrecy Index, which places it towards the higher end of the secrecy scale. Panama accounts for over 5% of the global market for offshore financial services, making it a major player among secrecy jurisdictions, with strong potential for further growth due to the stability and quality of its banking services. As one of the leading banking jurisdictions worldwide, regarded as one of the most stable for making deposits or holding assets, Panama is playing a full-fledged part in the modern international financial community.

Electronic Payments

Panama is a member of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network, which is the safest and most secure system for financial transactions worldwide.

Banking Facilities

SFM has a relationship with an extensive network of private and major banks in Panama. All the banks we refer our customers to offer a full international banking platform, with multi-currency accounts (£, € & $), online banking, and debit/credit cards. Please note that you must be physically present to open the account.

Once your order is complete, we will assign you a dedicated account manager to guide you through the account-opening process. Then, we will carefully select a bank with you from one of our leading partners that perfectly fits your requirements like a tailored suit.

Which documents are needed to open a bank account?

As a general rule, the bank asks for a certified copy of the shareholder's and director's passports (beneficial owner) and recent proof of residence, which must be less than three months old. If the client opens the account in person at the bank, a certified copy of the passport is not required.

We will email you the additional documents needed to open the account as an attachment; please sign and return them to us, preferably by special courier (DHL, FedEx, or Chronopost), along with the other documents mentioned above.

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