Offshore Banking

 Panama Bank Direct Merchant Credit Card Processing Account Requirements
 Corporate Bank Account Requirements
 Panama Bank Account Requirements
 Panama Bank Mortgage Financing
 Panama's Secrecy Laws
 Offshore banking strategies for privacy and asset protection purposes

  

Bank and brokerage account opening introductions are offered in Panama and a variety of other top banking jurisdictions. Many so-called offshore jurisdictions have seriously eroded banking secrecy that we can no longer recommend them as suitable jurisdictions to bank in. Such jurisdictions include the British Dependant Territories which include B.V.I., Montserrat, Turks and Caicos Islands, Cayman Islands, Anguilla, Bermuda, Isle of Man and the Channel Islands. A number of other countries such as Antigua and the Bahamas have signed very harmful information sharing treaties with countries such as the U.S. or the E.U., so the list of countries still maintaining strict banking secrecy has diminished.

This does not mean that banking in these jurisdictions is to be absolutely avoided at all costs but it needs to be thought through how important banking secrecy is above other factors. Many have businesses that have banking requirements where banking secrecy is not the most important feature, and of course if you live outside of the EU or North America, Australia etc., reporting regulations and enforcement in one’s home country are far less stringent. Also banks vary widely as to what commercial banking, currencies or investment services they offer, and so for many that will be an important factor to consider.

Banking in Panama

If banking secrecy is the most important factor then Panama is the best there is. See Panama's Secrecy Laws for further information on Panama ’s banking secrecy laws. Panama provides a wealth of secure banking options, and has assumed a pre-eminent position throughout the hemisphere as the most secure place to bank in. There has not been a banking failure in over ten years and the country has a very strictly regulated banking sector. Some of the world’s top major banks have branches here. It should be stressed that opening bank accounts here can be a somewhat difficult and time consuming task without some assistance. Bankers here prefer to base their decisions on local recommendations from law firms and that is how we principally assist.

Without a local referring party, the U.S. Patriot Act has put somewhat of a damper on the desire of some banks in Panama (as well as elsewhere) to open up accounts for non-residents, in particular for Americans. This is in particular related to the question of moving and clearing US funds. Since many now look to do their offshore banking in EUR rather USD, particularly those who live in Europe, that may be less of an issue. However, some Panama banks still only offer banking options in USD, since the USD is Panama’s currency as well. However, we can provide EUR banking options in Panama as well as certain other currencies.

Most banks in Panama require a personal visit which limits the bank account opening options available, however we do have relationships with several different banks who are willing to open an account without the client being physically present. Because we are a law firm and an element of trust established, the bank accepts our undertaking to only introduce trustworthy clients. Please do not ask us to reveal the identity of these banks as they are only revealed to our existing paid-up clients.

One needs to be aware of the fact that Panama bank accounts without a personal visit can sometimes take up to 6 weeks to open with certain banks, regardless of what you may have read on other sites. However, this is where we come in because we can shorten the timeframe in significantly by providing a law firm introduction and we can have the account open in 5 days or less. Indeed we can have an account along with a company and/or foundation ready to go the same day you pay for those that need an immediate account to receive funds into. This option involves an unused ready made (otherwise known as “shelf”) corporation or foundation which has an already existing and funded bank account (see our Ready to Use Today Company or Foundation with Bank Account package).  One of our lawyers will already be the initial signatory on the account but will resign immediately in favour of the new signatory upon presentation to the bank the necessary forms and ID requirements that the bank needs from the new signatory. Until this happens the account would be operated just like our managed accounts (see Account Signatory Services).  Therefore the account is immediately available for the receipt of international payments the same day that we receive payment from you and payments can also be made from the account as well. 

Another variant of this idea is we can immediately open a bank account in a day or two for your newly formed company or foundation with one of our lawyers as initial signatory as a temporary measure to get the account open expediently, while the client gathers together his due diligence documentation (see Panama Bank Account Requirements), submits it along with our own recommendation letters, and waits for the bank’s credit committee to make their review and decision. We charge the standard annual $1000 management fee for this service up front, but if the client assumes control over the account within 6 months, $500 will be refunded back into the account.

Without these options above some banks are willing to work with us to expedite the account opening, but in other cases the expedite option is not always available but worth the wait because of the desirable nature of the bank’s private banking services or its international network of branches as reasons for a client to choose this alternative.

Offshore Banking outside of Panama

There are really two broad classifications of banks – ordinary current or savings account for standard commercial or private use or what we would call a “Type 1” bank with a modest minimum opening balance of from $1000 to $10,000; and private client banking accounts (a “Type 2” bank) that specialize more in private investment banking and require a higher minimum opening and in most cases require starting balances of $100,000 or more. (Many require a seven figure minimum balance).

• Type 1: These banks are designed for those that need somewhere to “park” some funds, for an account to receive commission or investment dividend payments or a general commercial type of account. Investment options in these types of banks are relatively limited beyond term deposit or c.d. types of investments. They provide little or no personalized banking services or investment portfolio management and with the internet banking facilities they all have, having to talk to a bank officer is likely to be a rare event. Many, if not most of the banks in Panama, broadly speaking belong to this category, although there are now one or two excellent choices for Swiss-style private banking in Panama with far better banking secrecy then what Switzerland can now offer (see “Type 2” banks below).  Indeed one of these banks even has a Swiss branch.
  
  Outside of Panama we offer such bank account opening options. With very few exceptions now we do not recommend most Caribbean based banks which options we now limit to Belize or St. Vincent because many of the Caribbean countries have seriously compromised banking privacy with their information sharing agreements. Other options for this category of banking include options in Cyprus, Hungary and New Zealand.
  
  
• Type 2: These banks provide much more personalised banking services and investment portfolio management and can provide a much wider variety of investment options beyond just simple term deposits, and in many cases “in house” investment products. These banks usually expect a sometimes substantial minimum amount to be kept on deposit at all times, in order for the relationship to be maintained, and are only interested in long term relationships where it is expected that the bulk of funds stay on deposit for at least 6 months and preferably longer. This is an ideal option for those that have a nest egg that they wish to preserve in the most safe, private and conservative way possible for the long term. It is not a good choice for banking where funds need to be moved in and out on an ongoing basis.
  
  These “Type 2” banks are traditionally exemplified by Private Swiss Banks, who even today hold at least one third of all the world’s offshore banking deposits. However, Switzerland does not offer the best banking secrecy options any more plus there are comparable options as mentioned above now in Panama where you have far better banking secrecy.  However for some, Switzerland might still be an option they may desire but note that most banks there require at least $500,000 or $1 Million as a minimum to even get your foot in the door. In addition to Swiss bank accounts in this general bank category we also offer assisted account openings in Andorra and Austria where the account minimums are usually less and the services and options just as good.

We also can arrange for accounts in other jurisdictions on a case-by-case basis, but in many cases this has to be in conjunction with an incorporation done in the same jurisdiction. Typical examples we run into are a client needing an EU corporation because of the requirements of EU based merchant credit card processors. In this case we usually recommend Gibraltar as the most cost effective option and a Gibraltar bank account can be obtained along with it (see Gibraltar corporation and banking package), without having to visit in person. Other common examples include a Seychelles corporation along with a Seychelles bank account (popular with our Asian clients) (see Seychelles corporation and banking package) or a Hong Kong corporation along with a Hong Kong bank account.

Almost all of our corporate, foundation and corporate/Foundation combination packages include an offshore EUR or USD debit card and an offshore “Type 1” bank account. See here for details and pricing of each of our most popular packages. Account opening forms will be sent as soon as your order and full payment is received. For many these options may be all they need.

Our entry level bank introduction with these packages provides a comprehensive internet banking service, debit cards, current and savings accounts that pay higher than normal interest, as well as a variety of innovative investment offerings. Banking privacy is strictly observed and banking can be done in any major currency, making it a suitable entry level option for clients from all over the world.

General Corporate Bank Accounts Requirements

• Original or certified copies of the corporate documents issued by the appropriate regulatory authority (Memorandum & Articles of Association - By-laws), Certificate of Incorporation.
• Certificate of Good Standing (if the corporation is older than one year).
• Two bank reference letters for each signatory to the corporate account and covering at least a period of two years. References must be addressed directly to the bank where the account will be opened and must be on the letterhead of the referring bank.
• Legible, apostiled (or certified by your Ministry of Foreign Affairs office or local Panamanian Consulate Seal) copy of a passport or other photo identification (drivers license) for each authorized signatory and director on the account.
• The names of all shareholders and beneficial owners must also be indicated.
• Proof of Address (Credit Card Statement, report from a credit bureau etc not be less than six months old or a recent utility bill with signatory`s name on it).
  • Bank account application form signed and all “signed” forms must be also apostiled (as noted for Passport above and this only applies to Panama bank account openings).
• Signature cards and mandates completed with all signatures made in the presence of the bank or a certifying authority as stated above (Ministry of Foreign Affairs or local Panamanian Consulate).
• Documents stamped with the company seal.
• Completed account fact sheet which shows the transaction activity. Please note that information on the company's business activities, the expected source of funds and the likely frequency and amounts of deposits must be indicated on this form.

Panama Bank Account Requirements

Here are the very specific requirements for the bank account in Panama with one of the largest international banks in the world:

• Passport copy apostilled
• Drivers licence copy
• Copy of any Visa, Mastercard or American Express card in your name
• 2 bank references (or 1 bank and 1 commercial preferably from a lawyer or accountant) for all authorized signers on the account.
  

Information Required:

1. Commercial Activity (What is the company dedicated to/source of funds)
2. Purpose of the account
3. Annual sales USD
4. No. of employees
5. Anticipated volume of activity: amounts and frequency that will be managed in the account monthly (cash, cheques & wire transfers)
6. Any relation, personal or commercial with the bank in question in other countries.

The following personal information is also asked for:

1. Mailing address
2. E-mail address
3. Civil Status
4. Profession
5. Academic Level
6. Number of Dependents
7. Type of home (own/rented/shared)

The above is a fairly typical. Our bank options in Andorra, Austria and Switzerland tend to be fairly similar. Our smaller bank options in Belize, Latvia, and Montenegro may not need quite so much and the account opening process will take between 1 to 4 weeks or so as opposed to 6 to 8 weeks for the former including Panama.

To view Panama's secrecy laws, click here.

Panama Bank Mortgage Financing

Rates vary from bank to bank, so we will shop for the best rate and terms if you would like us to obtain financing for a Panama property you wish to buy.  We charge a mortgage origination fee of 1% of the loaned amount obtained.  A $500 non-refundable application fee is charged which will be applied to the 1% payable at the closing of the loan. 

Panama Bank Direct Merchant Credit Card Processing Account

For existing e-commerce businesses processing at least $20,000 in existing credit card volume we can obtain a merchant account directly with one of the largest banks in Panama. The average rate is typically around 4.5% + 23 cents per transaction but rates will be based on volume, years in business and other factors.  These rates, while higher than domestic, are considerably lower (as much as half) then what you can expect to find with a typical offshore clearing house processor.  Both options however will typically deduct a 10% 6 month floating reserve.  This means that the reserve will be released and paid to you after 6 months has elapsed.

The advantages of this other then the lower rates are:

1. Greater stability – most clearing house payment processors are ultimately dependant on their bank processing relationships which can change causing disruptions.
2. Strict banking privacy – many offshore payment processors and their banks are located in countries with little or no banking privacy.
3. Faster turnaround on getting paid.
4. You deal directly with the bank rather than with a separate organization that then deals with the bank.

If you have a start-up operation we would advise starting out with a clearing house processor and after at least 6 months or a year once there is sufficient volume and transaction history, moving to a direct bank processing relationship.

Requirements and procedures for Panama bank merchant account:

1. Complete Bank Merchant Application
2. Present written information about company and product(s):
3. Articles of incorporation and Certificate of Good Standing.
4. Owner(s)’s copies of passports or I.D. cards.
5. Copy of operational license.
6. Gas, water, or electricity bill with company address.
7. Call center(s) information.
8. Technology (providers, quantity, software, packing)
9. Website (company and registry document).
10. Trade references (provider(s)’s information).
11. Shipment information (shipping company, delivering time)
12. Business Plan (markets, product description, product history)
13. Refund Policy.
14. Financial Statement (most recent balance sheet/Income Statement).
15. Tax returns of the last 2 years.
16. Bank statements of last 3 months.
17. Two Bank References on letterhead addressed to Bank (or attorney / accountant reference letter if only one bank reference available)
18. Two Commercial References on letterhead addressed to Bank (can be issued by providers)
19. Present written information about gateway(s) and processor(s):
20. Name(s)
21. Contact person(s)
22. Account registry document
23. Processing history (all transactions including chargebacks and returns for the last 6 months).
24. Monthly Billing
25. Sign proposal provided by Bank.
26. Sign Spanish & English contracts provided by Bank.
27. Complete and sign account opening forms.
28. Wire funds for accounts agreed on proposal.

For on-line pharmacy merchants:

1. Medicine rider duly signed (including name, location, license, and contact person)
2. List of U.S physicians that will issue prescriptions, showing their id numbers.
3. Questionnaire for prescriptions.

Acceptable chargeback rates are 1.0% for Visa & Mastercard separately and credit or returns rate: up to 5.0%.

Click here to apply for a Panama bank merchant credit card processing account.