| START --> Whether you are trying to protect $50,000 | | | | lending practices. For example, foreigners who would |
| or $5 million you need to select an offshore banking | | | | like to get a mortgage must pay 30% of the money |
| jurisdiction that offers true asset protection and rock | | | | up front. Panama has no idea what a sub prime |
| solid banking privacy laws. Panama stands head and | | | | mortgage is. Furthermore, Panama does not lend |
| shoulders above the crowd. | | | | money to purchase foreign real estate instead |
| Panama: Strong Banking Secrecy & Privacy Laws | | | | choosing to lend in a market where the true property |
| Of all of the offshore tax havens our firm has | | | | values are well known to them. Panama does not |
| compared Panama rates at the top of the list for | | | | have a central bank and hence Panama banks do not |
| financial privacy laws and banking secrecy. In order to | | | | have a lender of last resort like the Federal Reserve in |
| find out the name of an account signatory on a | | | | the US. If a Panamanian bank was on the verge of |
| Panama bank account a third party would need to file | | | | failure no one would be there to bail them out so they |
| a motion in Panama court and be granted a court | | | | are forced into conservative lending practices. |
| order. Court orders of this nature are only given out in | | | | Economic Effects of Canal Expansion |
| Panama where evidence of serious crime such as | | | | Panama is in the midst of an economic boom |
| money laundering or drug trafficking can be shown. | | | | seemingly defying world trends with an economy that |
| Many other jurisdictions have comparable laws on the | | | | is set to grow more than 9% this year after a 10% |
| books to Panama's but they are often not enforced. | | | | increase the previous year. This boom has been |
| This is not the case in Panama where these laws are | | | | fueled by a hot real estate market, increasing tourism |
| not only enforced but people found guilty of breaking | | | | and also the massive Panama Canal expansion |
| these laws face fines and jail time. | | | | project which when completed will double the Canal's |
| Personal vs. Corporate Offshore Bank Account | | | | revenues. |
| Although the process for setting up a personal bank | | | | Interest Rates on Panama Bank Accounts |
| account in Panama is easier than for a corporation | | | | Interest rates for savings accounts in Panama in many |
| using a personal bank account is not advisable for 2 | | | | cases are comparable to rates attainable onshore. |
| main reasons: many countries have reporting | | | | There is one bank in Panama that pays almost 7% |
| requirements for foreign personal bank accounts and | | | | interest on large deposits. The average interest rate |
| wires coming in and out of your account will have your | | | | on savings accounts is roughly 4.5%. Interest earned |
| personal name on them. This immediately makes all of | | | | on your money in a Panama bank account is tax free |
| your privacy planning worthless. Corporate accounts | | | | by Panama law. With conservative lending practices |
| have the name of the corporation on the wiring details | | | | and features and services similiar to an onshore bank, |
| shielding your personal name from liability. | | | | offshore banking in Panama is as good as banking |
| Panama Bank Stability | | | | down the street at your local bank with the added |
| Panama banks have a reputation for conservative | | | | privacy bonus. |