Open a bank account in Panama

Hello, I think the better and fast way to open a bank account here in Panama is giving the papers to a Lawyer, it work for me! I have this office number in case you want 507- 3150910. Let me know in case you do it, so I can check they do it in the same way they do it for me.

Regards

Try ScotiaBank, we didn't have any problems. Same day for an account.

There remains a great deal of uncertainty on which Panama banks (if any) sign up to U.S. regulations under FATCA.  Those decisions need to be made soon.  Doing so imposes extremely burdensome IRS reporting requirements on the banks, which frankly I doubt most could handle or  be willing to accept for relatively small balance accounts.  If you are successful in opening an account at a Panama bank and the bank does NOT accept FATCA, please understand that all transfers to the account from the U.S. are subject to 30% tax withholding by the U.S. bank.  This too imposes significant burdens on the U.S. bank, requiring it to remit and report to the IRS the amount of the transfer, taxpayer SSN, date, etc.  Therefore, I would not be surprised if U.S. banks simply adopt a policy that they will not transfer funds to a non-FFI ("Foreign Financial Institution" that has accepted and agreed to the IRS reporting requirements) to avoid the tax withholding and remitting on their customers.

Much more will be known in the next six months or so, in my opinion, and you will be able to check on the IRS site whether the Panama bank you intend to open an account with is on the approved FFI List.

You can go to: www.irs.gov/FATCA. for more U.S. information regarding FATCA. I was told that almost ALL banks will be complying as this is throughout the world. I went to Scotia Banks website (who are out of Canada) and got a Question and Answer page relating to FATCA. From what I understand, they may make you fill out a tax form in order to be compliant. Good luck in your research. If you still have questions, please consult a tax advisor as they will hopefully have the current updated information. 

Panama has NOT signed an Intergovernmental Agreement (IGA) with the U.S.   Canada has.  The Scotia Bank website information pertains to Americans with Scotia Bank accounts in Canada, not Panama.  Although a subsidiary of the Canada bank, The Bank of Nova Scotia (Panamá), S.A. operates in Panama as a Panama entity licensed by the Superintendent of Banking under a General Banking license.  Stated differently, simply because the Canada bank complies does not mean necessarily that the Panama chartered bank will.

(At last count, about 18 countries have signed an IGA with the U.S.  IGAs are a welcomed addition for FFIs. They help FFIs streamline compliance with FATCA procedures, stretch out some deadlines, layer local regulation and reporting and provide clearer definitions.)

There are reasons why Panama banks will not sign up as FFIs and report to the IRS without an IGA in place. The FFI will have to examine every account and classify them into categories such as US specified persons, recalcitrant account holders and NPFIs. If necessary, the FFI will need to take remedial action where there are documentation gaps and questions. Know-your-client processes will be followed to ensure updated tax documents, such as W8s and W9s, are on file. Where the status of the account holder cannot be confirmed, the FFI will ultimately close the account.

The burden of FATCA is, in my opinion, a principal reason HSBC Panama sold its banks to Banco Colombia.

Still no FATCA intergovernmental agreement [IGA] between U.S. and Panama.  Get ready to have 30% withheld from your U.S. sourced payments, including transfers from your U.S. bank to your Panama bank.  From the IRS website:

The following jurisdictions are treated as having an intergovernmental agreement in effect:

Jurisdictions that have signed agreements:

Model 1 IGA

•Canada (2-5-2014)
•Cayman Islands (11-29-2013)
•Costa Rica (11-26-2013)
•Denmark (11-19-2012)
•Finland (3-5-2014)
•France (11-14-2013)
•Germany (5-31-2013)
•Guernsey (12-13-2013)
•Hungary (2-4-2014)
•Honduras (3-31-2014)
•Ireland (1-23-2013)
•Isle of Man (12-13-2013)
•Italy (1-10-2014)
•Jersey (12-13-2013)
•Luxembourg (3-28-2014)
•Malta (12-16-2013)
•Mauritius (12-27-2013)
•Mexico (11-19-2012)
•Netherlands (12-18-2013)
•Norway (4-15-2013)
•Spain (5-14-2013)
•United Kingdom (9-12-2012)

Model 2 IGA

•Bermuda (12-19-2013)
•Chile (3-5-2014)
•Japan (6-11-2013)
•Switzerland (2-14-2013)

Jurisdictions that have reached agreements in substance and have consented to being included on this list (beginning on the date indicated in parenthesis):

Model 1 IGA

•Australia (4-2-2014)
•Belgium (4-2-2014)
•Brazil (4-2-2014)
•British Virgin Islands (4-2-2014)
•Croatia (4-2-2014)
•Czech Republic (4-2-2014)
•Estonia (4-3-2014)
•Gibraltar (4-2-2014)
•Jamaica (4-2-2014)
•Kosovo (4-2-2014)
•Latvia (4-2-2014)
•Liechtenstein (4-2-2014)
•Lithuania (4-2-2014)
•New Zealand (4-2-2014)
•Poland (4-2-2014)
•Portugal (4-2-2014)
•Qatar (4-2-2014)
•Slovenia (4-2-2014)
•South Africa (4-2-2014)
•South Korea (4-2-2014)
•Romania (4-2-2014)

Model 2 IGA

•Austria (4-2-2014)

Panama has agreed in principle with the U.S. as of May 1, 2014 and has until December 31, 2014 to sign the inter-governmental agreement on FATCA.  Over time, Panama banks will register with the IRS so they can eventually report on U.S. clients.

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