Opening a Bank Account in Panama

By: Rolando A. Guevara Alvarado, Esq.

Over the past three years the face of the Republic of Panama has lived important changes as it has been transformed into one of the fastest growing economies of the region, where investors from all over the world are coming to this country to buy anything from land to houses, from islands to haciendas, investing in logistics, trade, telecommunications and other areas, without mentioning the up coming widening and construction of the third set of locks of the Panama Canal.

The increasing number of expats that have prompted said increase in this small country of almost 3 million people have at least, experienced one time, the process of opening a personal or a corporate bank account in Panama. Some have referred to it as hectic and complicated process, others as an unnecessary presentation of documents, but the truth is that you have to comply with such requirements if you do not want to carry on enormous amount of cash in your pockets, or if you want to run your company in a business like manner.

In a Nutshell, this article is intended to give foreigners some tips and basic information of the documents and requirements which may be important to bring with you at the moment of opening a bank account in Panama, which are:

Consult with a local attorney, finance expert, accountant, real estate broker or business consultant regarding the bank of your preference, and if it is operating in Panama as a bank with “General License”, thus, entitled to carry on every kind of banking transactions in Panama.
Once you have chosen the bank, then it is important, specially if you are a foreigner, to meet the bank officer personally. Most banks require a personal interview with the applicant. Telephone interviews are allowed but in the least cases. Telephone calls with the bank officer are customarily once the bank account has been opened and you become a regular client of the bank.
The client must provide to the bank officer a copy of his / her valid passport including the photo, personal page, and very important, the entry page stamped by the local Immigration authorities reflecting the client’s migratory movement in Panama. You will not be surprised if the bank officer requests you to make a copy of the entire passport. Sometimes, it is better to provide an authenticated photocopy, by a Notary Public in Panama of the entire passport. (Approximate cost of this document will be of US$10.00, and can be used for other valid purposes.).
A second personal I.D., such as a driver’s license or national I.D. card may be required.
Two (2) bank references for the account holder addressed to the bank in original form. Copies are accepted provided the originals will be presented later. If it is a Panamanian corporation then, the same is required for each registered Director & Officer. Many banks accept only one (1) bank reference if the client has worked most of his / her life with one bank. The letter shall basically evidence the relationship of the client with his / her bank for a minimum of two (2) years; also, the satisfactory conduct of the account holder and a general information of funds (no need for exact figures). Please note that most bank officers do confirm such references.
Two (2) professional references which may be issued by a lawyer, an accountant, a business or an insurance broker, even by a store of which client has maintained a good business relationship for a minimum of two (2) years, showing the nature of the business and the relationship with the applicant.. This letter may also be issued by the employer of the interested client but must be given to the bank in original form and under the company’s letterhead. The same requirements applied for the Directors & Officers of a corporation.
Proof of Address: Most banks require a copy of a utility bill (telephone, electricity, water, cable T.V., internet, etc.), containing the applicant’s name and address.
If applicant is a corporation, then a “Company Profile Letter” will be necessary with a brief description of the type of business that applicant will engage in. Information pertaining such letter which shall be included therein is as follows: the reasons for opening a bank account in Panama; location of business; the product or services provided by the company; expected volume of business; estimated amount and movement and deposit of funds whether monthly or annually; and any other relevant information regarding to the corporation’s nature.
Likewise, if the applicant is a Panamanian corporation, then copy of the Articles of Incorporation and a Certificate of Good Standing issued by the Public Registry Office must be provided.
Once the foregoing has been accomplished, then the bank officer sends the whole package of the applicant to the “Compliance Officer” of the bank who will review the entire bank application, thus making sure that funds are not from money laundering and preventing that it will occur.
After the review of the Compliance Officer and the special Committee of the bank, then the applicant is given a number for his / her account.

The aforesaid entails a smooth process which may take from one to two-weeks time. It is highly recommended to have the assistance of a lawyer who will usually monitor the entire transaction and also will serve applicants as their liaison with the bank.

Foreigners tend to believe that it is lengthy process, which I may personally agree, but rest assure that once the bank account is opened, then the operations and relations of the client directly with the bank will smooth and without any major problems. Usually, bank officers in Panama are very jealous with their clients and try as much as possible, to have them satisfied with the services provided.

Therefore, if you are a foreigner who wishes to open a bank account in Panama, whether personal or under a company’s name, please take into consideration this information, that will surely make this experience easier and stressless.

Khalaro Investments is willing to assist you in every aspect related to opening a bank account in Panama. Contact us now for more information.

Opening a Bank Account in Panama

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