What You Should Know About Banking in Panama
Panama is one of the top three largest banking centers in Latin America and competes with financial hubs such as Chile and Brazil. Its unique banking infrastructure is suitable for both local and global businesses.
The entire sector is regulated by the Superintendencia de bancos de Panama (SBP), whose main efforts are aimed at reducing risks, ensuring compliance with AML/CFT standards, and maintaining a high level of trust.
Processing Time
2 – 8 Weeks
Average Opening timeline
Initial Share Capital
USD$ 3000
Minimum required capital
Bank Fees
2% – 4,5%
Per Transaction
Structure of the financial services industry:
- There are more than 65 licensed banks operating in the country.
- The market includes 120 branches from 20 countries, including the US, Canada, Colombia, Switzerland, and others.
- The total amount of assets managed by banks reaches $140 billion.
| Type | License | Service | Features |
|---|---|---|---|
| Bank with General License | General License | Local and international clients | Allowed to work with both residents and non-residents. |
| International Bank | International License | Only international clients | Allowed to work only with non-residents and companies operating outside the country. |
Every year, more than 15,000 new legal entities are registered, which can benefit from:
- 0% tax on foreign income. Panama is not an offshore jurisdiction, but has introduced the territorial principle of taxation.
- Fast registration in 1-5 days, remotely.
- $0 minimum authorized capital, with no obligation to contribute it.
- Settlements in US dollars.
- English-speaking environment.
Why Businesses Choose Panama for Corporate Banking
The combination of financial stability, convenient solutions, and an internationally oriented economy attracts entrepreneurs, trading companies, and holding companies from around the world.
When opening a bank account in Panama, a company receives the following benefits:
Selecting a bank that allows remote account opening.
Traditional financial institutions, such as Banco General and Scotiabank, may offer in-person meetings for signing contracts or undergoing verification. Some of them use a hybrid approach, including video interviews, while more progressive banks, such as Jetonbank, verify documents via an online platform and activate accounts without requiring a physical visit from the customer.
Provide a complete set of documents and accurate data.
In the area of finance, the priority is full verification of clients, their compliance with AML/CFT, and confirmation of the sources of funds, so it is important to provide a comprehensive set of documents.
Apostille or notarized documents.
Documents must be in Spanish or notarized/apostilled, even if they are submitted via an online platform.
Make an initial deposit.
When opening an account remotely, one of the conditions may be a minimum deposit of $10,000 and maintaining a corresponding balance.
Required Documents for Opening a Corporate Bank Account in Panama
In order for the entire process of opening a bank account in Panama to be successful, it is necessary not only to prepare all the information, but also to go through a rigorous process (AML/KYC), describe the business profile in detail, and confirm the sources of funds.
The main documentation and details that financial institutions pay attention to when establishing business relationships with corporate clients:
| Category | Documents | Requirements |
|---|---|---|
| Corporate Information | Certificate of Incorporation; Articles of Association; Register of Directors; Register of Shareholders; Certificate of Good Standing; Board Resolution to Open a Bank Account; UBO Structure | Banks must know who owns the company and who makes key decisions. |
| Personal Data of the Director, Signatory, Shareholder | Passport/ID document; Proof of address; Reference letters; Certificates; Statements | Documents must be issued within the last 2–3 months; additional information may be required. |
| Proof of Source of Funds | Financial statements; Balance sheet; Bank statements; Contracts | The company must clearly explain the source of funds for share capital, business operations, and related activities. |
| Business Profile | Business plan; Management structure; Ownership percentages | A description of planned financial activities, types of operations, key markets, and clients must be provided. |
| Confirmation of Corporate Authority | Board protocol/resolution; Power of attorney; Notarized documents | The signatory must have legal authority to open the bank account. |
Requirements for Non-Residents to Open a Corporate Bank Account
If the company’s shareholders and legal entity are non-residents, it is necessary to consider what is required to open a bank account in Panama:
Enhanced compliance.
Financial institutions will carefully examine the structure of the legal entity, passports (identity documents), and proof of residence for the purposes of KYC/AML, as well as conduct due diligence (examine declarations, contracts, receipts, account statements, and anything else that proves the source of funds).
Legal capacity.
It is necessary to disclose the entire management structure, UBO, and prove the legal capacity of the person (representative/manager) to perform the relevant actions.
Additional recommendations.
Banking, professional, and commercial recommendations will help establish effective business relationships.
Types of Bank Accounts You Can Open in Panama
When choosing the right type of account for your corporation, you should familiarize yourself with the terms and conditions and fees.
When opening a Panama bank account online, you can choose from the following account types:
- Corporate/business accounts are used for conducting operational activities, receiving payments, conducting currency transactions, and connecting to online banking.
- Offshore corporate accounts are used to manage funds on a global scale (they can be current accounts or savings accounts).
- Personal accounts are available to individuals (residents and non-residents), and limits may be imposed on the balance.
- Investment and deposit accounts are used to deposit funds for a specific term at an appropriate interest rate. According to SBP data, about 39% are deposit accounts.
Step-by-Step Process for Opening a Corporate Bank Account in Panama
Opening an account is a clearly structured procedure consisting of a series of defined steps:
Stage 1. Selecting a bank according to business objectives.
First, you need to find out what the requirements are, the minimum deposit amount, the possibility of online cooperation, types of currencies, compliance level, availability of additional services (loans, cards, merchant accounts, investment opportunities).
Stage 2. Preparation of documents.
When preparing documents, determine whether it is possible to submit a complete set of corporate documents remotely or through a representative.
Stage 3. Compliance check.
The bank must analyze the corporate structure and business profile, study public sources, assess the risk associated with owners and counterparties, verify the origin of funds, and ensure the transparency of activities.
Stage 4. Account approval and activation.
Banking, professional, and commercial recommendations will help establish effective business relationships.
Minimum Deposit Requirements and Bank Fees
There is a wide network of financial institutions operating in the jurisdiction, so there is a choice between them when registering.
For long-term deposits (2-5 years), some banks offer up to 6% (Banco Azteca), while for medium-term investments (1-3 years), deposits yield 4-5%. A notable feature is that such high rates may be offered for deposits of $10,000 or more.
Average deposit rates:
BAC Credomatic:
- 1 month – 2.5%
- 3 months – 3.0%
- 6 months – 3.5%
Banco Azteca:
- 1 year – 5.00%
- 2 years -5.5%
- 3 years – 6.0%
- 5 years – 6.5%
Pacific Bank offers up to 5.5%.
BBVA offers 4.5% for deposits of $10,000.
There is no tax on interest income, the average rate is 4.75%, and the terms range from 30 days to 5 years.
Why you should use Corporate Services by Gofaizen & Sherle
The successful opening of a corporate account depends on a combination of factors, such as meeting all the requirements of banking structures, passing compliance procedures, and minimizing errors.
Gofaizen&Sherle has:
- A thorough understanding of local banking requirements.
- Many years of expertise in working with non-residents and offshore structures. Gofaizen&Sherle specialists will be able to identify potential “red flags” in a timely manner and eliminate them before submitting to the bank.
- Experience in compiling a complete banking dossier, including corporate documents, personal KYC files, recommendations, and financial forecasts. At the same time, we ensure complete data privacy.
- Minimizes the risk of rejection. When analyzing documents, the projected type of transfer, and the volume of transactions, we will help you choose from a variety of offers and get a guaranteed positive result.
- Quickly pass EDD, which is one of the most difficult stages. It is during EDD that banks may request confirmation of the origin of funds, explanations of transactions, and more.
Specialists interact with clients prior to opening and fully activating an account, making a deposit, and making the first payments.
FAQ About Bank account opening in Panama
Which bank is best for foreigners in Panama?
Most often, non-resident entrepreneurs turn to Banistmo, BAC, and Multibank for international services.
How much money do you need to open a bank account in Panama?
The minimum deposit depends on the bank and the type of account, averaging $5,000, with the main currency being the US dollar.
How long does it take to open a bank account in Panama?
The verification process takes the most time, so it takes approximately 2-4 weeks to verify the data.
Why do people have bank accounts in Panama?
Due to a combination of factors, such as the stability and dollarization of the economy, data confidentiality, and ease of company setup.
Can I open a bank account in Panama without being a resident?
Yes, financial institutions have many years of experience in dealing with non-residents, but it is important to take into account the taxation system in the country of permanent residence.
What international banks are in Panama?
The jurisdiction has branches from more than 20 countries, including Citibank, Scotiabank, HSBC, and Itau.
Which bank is foreigner friendly?
Banistmo, BAC, and Multibank have extensive experience working with foreign corporations and holding companies.
Can I open a bank account online without going to the bank?
Yes, but in most cases, you will need to undergo a video interview and send the original documents by mail.
