7. Open Offshore Bank Account In Panama

Main Kw: Open Offshore Bank Account In Panama

Secondary Kw: Offshore Bank Account, Offshore Bank In UAE Dubai, Open offshore bank account in United Arab Emirates

Know how to Open Offshore Bank Account In Panama

You may be interested to Open Offshore Bank Account In Panama and want to know the procedures involved. Three categories determine how tough will it be to open an account here. You need to be aware of which category you fall into. They are:

·       American (although having a cedula)

·       Foreigner, but not an American

·       Permanent resident status in Panama with a Cedula (Possessing Panama ID Card)

The first group is considered to be the most difficult, whereas, the last is the easiest.

Easy opening of bank accounts

Americans can open a bank account without much difficulty in Panama. However, this does not apply to all Panama banks.


Irrespective of the group you fall into, opening an account in any of the banks in Panama will take time. But if you know some ‘contacts’, or consult a professional, setting up an account takes around two weeks to two months. Whether you open an account in an Offshore Bank In UAE Dubai or Panama, you need to submit several documents.

Essential documents

The fact is that every bank follows its own rules and regulations. Generally, you are required to provide the following documents:

·       Cedula, Driver’s license or some valid ID

·       Passport

·       Two reference letters are derived from international or local banks. Should be a recent letter around 30-60 days.

Other documents that may be needed to be submitted

·       Income evidence (pension, pay stubs, etc.)

·       Last three months bank statements

Proof of having a valid link with Panama

You will be required to submit some proof of your having a genuine connection in Panama:

·       Utility bills

·       A letter is to be provided by lawyer specifying undergoing the immigration procedure.

·       Cedula

·       Proof of owning titled property

Other documents to consider

Whether you Open offshore bank account in United Arab Emirates or Panama, you need to certain a good number of documents. There are lots of paperwork to be done, describing you, your family, the source of acquiring funds and how it is derived.

In the future, you may plan to withdraw a large sum, in the money order form, like for example, $5,000. If you do, then you need to report where this withdrawn amount is going to be spent. This procedure is followed to help prevent criminal activities and money laundering.

Three items to consider while setting up Offshore Bank Account in Panama

While filling up essential paperwork, ensure proper setup of your account.

·       Checking vs. Savings: Checking accounts opened in most Panama banks invite some fees. However, this does not apply to savings accounts.

·       Beneficiary Wills & Forms: There is a beneficiary form that you need to fill up while opening an account. Making this will is mandatory to ensure no issues arise in case of divorce, death, etc. At the same time, a will also has to be created in Panama. It will help ease unnecessary future expenses, headaches including bureaucratic obstacles faced by your family members.

·       Joint Account wording: For joint accounts, names should be listed in the following manner on the account:

o   Not you as well as your partner

o   You or your partner

In case, any of the above expires, then accessing the money will become a real nightmare. Hence, the critical ‘or’ should be preferred to be on the safe side and for faster access to the account.

Cedulas and Non-American Foreigners

The process to Open Offshore Bank Account In Panama is meant for foreigners. This is irrespective of the person having a residential status here or not.

For Cedula holders

For cedula holders and those in the process of deriving one, it can help speed up the entire procedure. Some banks may require the applicant to have a cedula for opening a bank account. It helps simplify as well as shorten several bureaucratic tasks here. The officials can deal better with those having valid cedulas. Otherwise, officials are likely to become unsure and more cautious in their approach. This will only slow down the entire process.

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Panama Banks and Americans

American citizens do face issues while setting up a bank account in Panama. Not every bank allows Americans to open an account with ease. The reason is that most Panamanians do not seem to be interested in money and are more patriotic. On the other hand, the United States is considered to be the only country that follows the given-below:

·       Requires reporting from overseas banks on its citizens having banking accounts of over $10K. It is specified in FATCA.

·       Requires citizens to make tax payments on all earned income, even if the money is earned overseas.


This Act requires all reports from foreign banks on particular American-held accounts. This time-consuming reporting is what is said to make banks in Panama to hesitate to provide accounts to Americans.

It is more about identifying citizens not paying proper taxes in their home countries. Overseas citizens, as per the U.S. government are not sincere in their tax payments. Thus, every year, there is a loss of $100 billion in tax amounts.

Panama banks are to report to the US Treasury

No more is Panama a tax haven for U.S. citizens. This is because of the tax treaty that Panama had signed with the United States. Banks in Panama are to adhere to FATCA rules and regulations. This means that Panama banks need to file paperwork annually with the United States government. It should specify the account holders’ names as well as their balances. This is more so if the amount is over $10K or $50k, which again depends on the form required. Thus, you can earn favors from the Treasury Department and the IRS.

Hence, for Offshore Bank Account opened by American citizens, Panama banks are to work hard. They need to determine the ones for which they are to fill out, report and send correct forms annually. Not sending reports on time or properly will mean, the U.S. will impose hefty fines on those banks.

If you belong to any other country, you can consult a reputed professional to Open Offshore Bank Account In Panama.