Banks Panama and Privacy
From a banking standpoint, Panama banking may have become the new Switzerland. Panama has the best banking secrecy in the world, and your Panama banking account can also serve as a tax shelter.
Panama Offshore Banking and Tax Treaties
The first thing you need to know about tax treaties that Panama has entered into with any other countries is that there aren’t any. That’s right, none. Tax treaties can compromise your privacy by, among other things, guaranteeing an exchange of information if a requesting country wanted to know some facts about an account. If, for example your home country had a tax treaty with Panama, your bank would be obligated to provide financial information to your home country.
Bank Offshore Panama: a Privacy Haven
If another country has Mutual Legal assistance Treaty with the country in which your offshore bank exists, that country may request information through diplomatic channels. Panama participates in these, but only in the case of criminal investigations. The requesting country would need to show that the requested information is absolutely required in order to prosecute the case, and that they can’t get the information any other way.
Panama could deny their request, or grant it after they’ve concluded their own investigation, which could take years. Panama is not in the habit of thwarting legitimate requests for information on real crimes. They’re not in the habit of sharing information when it’s not absolutely called for, either. If you are involved in narcotics trafficking, money laundering, terrorism or child pornography, you might have a problem. If not, not.
Panama Bank Account Secrecy Laws
Panama law offers severe punishments for those who violate its secrecy laws. The National Banking Commission, for example, can access documents relating to the bank’s operation, but not individual accounts. They may not examine or inspect any type of individual deposit accounts, nor the securities held in custody by the bank for clients, nor the safe deposit boxes belonging to clients and their contents, nor the documents associated with receiving credit from the bank, unless there is a Panama Court Order in place that specifically authorizes such inspection or examination according to Article 89 of the Panama Commercial Code. Article 89 of the Commercial Code is rarely invoked except in cases involving serious criminal activities.
Banks Panama and IBC´s
Panama’s government has done away with numbered bank accounts. This is due to pressure by the Financial Action Task Force, a private entity which seeks to coordinate anti-money-laundering procedures to banks worldwide. This means an account has to have a name.
However, with an anonymous Panama International Business Company formed as a Bearer Share Corporation you can achieve the same level of privacy. Rather than give them your passport or driver’s license, you will give them the information for your Bearer Share Corporation. This corporation is anonymous. There is no reporting or recording of any stock ownership records in any registry or database. It’s impossible to determine who’s behind the corporate veil, as ownership is based on who actually holds the bearer shares. Thus your privacy is insured. |
