Panama is one of the most popular places for offshore
banking. Numbered accounts no longer exist in Panama,
instead Panama has what are known as bearer share
corporations and those corporations own a bank account.
These corporations work because they have no ownership
records. The person in actual possession of the shares is
considered the actual owner of the corporation and the bank
account, creating an excellent level of privacy for the
parties involved.
Of course there has to be someone as a signatory on the
company bank accounts but within every corporation there
can be more than one person with signing authority. Being
a signatory on an account is not proof that the corporation
funds are your funds.
Technically, the owner of the bank account is the
corporation and not the people with signatory privileges.
Panama's banking secrecy laws are what make it an appealing
place for offshore companies to be formed.
Lets Take a look at some of those laws:
Article 74 of Decree 238 makes it so the banking commission
of Panama can't conduct an investigation on personal
banking clients. Additionally, if it uncovers any
information during normal operations they aren't allowed to
reveal that information to any person or authority. They
may only do so if they are subpoenaed by a Panama court.
Violators of this law are subject to another law which
imposes fines or jail time on the guilty party.
Article 65 of Cabinet Decree 238 regulates the manner in
which the National Banking Commission can gain access to
banking information and documents. The law states that they
may only inspect the banks general books and that they may
not single out individual bank accounts. That law covers
both deposits and securities at the bank, and this to can
only be broken by a court order.
Article 170 states that any person with access to
confidential banking information through either occupation
or activity, that uses this information without the consent
of the involved parties, in a way that causes someone
damages, they can be punished and possibly imprisoned.
That sentence can be anywhere from ten months to two years,
it may include monetary fines and they will also be barred
from practicing their profession for a two year period.
Regardless of where you bank today there are three reasons
that can lead to your banking secrecy being violated. Those
three reasons are severe criminal activity such as
terrorist funding, money laundering and drug smuggling.
In Panama tax evasion is not considered a serious crime.
There is no court in Panama that will allow your banking
secrecy to be violated for tax related violations unless a
case is brought that can show this money was also involved
in a serious crime.
Panama is a member of the mutual legal assistance treaty.
After 9/11 it is required that all jurisdictions who move
funds to and from North America and Europe be a part of
this treaty. When you analyze this treaty it does not
threaten any of the strict secrecy laws set fourth in
Panama.
The following are the basics of the treaty. The activity in
which an investigation is being conducted must be a crime
in both countries. If a country wants information they have
to prove they have no other alternative method of obtaining
it and they must also show they can not go fourth with
legal action without the information. When information is
requested it has to be specific. They can't just be fishing
for information.
They must also first file a criminal case in its court
system on a national level, which ensures that smaller
cases are not covered under the treaty. If another country
meets all of the conditions, the request is pushed through
diplomatic channels and then Panama must consider the
information request.
Panama values its banking secrecy laws and they may ask for
more information before they break the laws they hold with
such esteem. It is not uncommon for Panama to deny an
information request since they need to feel the matter is
serious on their end to bring action against a person. They
do have the right to refuse a request within the
aforementioned guidelines.
Panama does not in any way shape or form participate in any
tax treaties. They also do not acknowledge tax related
investigations as criminal situations. Panama will never
disclose a person's financial information for any reason
relating to a tax issue. Tax evasion is considered a civil
matter in Panama. In Panama you must commit a serious crime
to risk your financial privacy.
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For more information about Panama banks, offshore banking
in Panama or to get a Panama bank account please visit the
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