Panama has a Mutual Legal Assistance Treaty (MLAT) with the U.S., thus making their banking system information available to the U.S. government.  What was, for many years, a “veil” against information being sought by an outside government is now lifting, and Panama, along with Switzerland and other offshore havens is cooperating in the Tax Information Exchange Agreements (TIEA) treaties with 82 different nations.  What this means to you is that if you were considering opening a bank account in Panama in order to hide assets, it’s not going to happen.

That said, if you are moving to Panama and need to open a local bank account, you can do so.  This is what you will need:

Two letters of recommendation from your “home country” bank saying how long you have been a customer.  Be sure the letter is on your branch letterhead and that it has a name and contact number so the information can be verified.  Some American banks in Panama may require that you undergo a credit investigation.

If you are a retiree, two banks in Panama will accept your Social Security deposits directly.  They are Banistmo and Banco Nacional, the two largest banks in Panama. There is no charge for the direct deposits and they are fully in compliance with the U.S. government.  You will need two pieces of identification to open your account, including one that indicates your age.  Both banks have ATMs throughout the country and offer debit cards. 

Panama’s official currency is the Balboa, but there are not paper bills, only coins in Balboa denominations.  The U.S. dollar is the medium of exchange in Panama.

To open a general bank account in Panama, you will need your passport and your Residency Card, plus the two reference letters you brought with you from your bank in your home country.  Be sure the reference letters give a statement of funds held in your account.

Bring evidence of your Panamanian residency – a lease or title to your home.  You will need a telephone number (mobile is fine) and a permanent mailing address, although mail is not delivered in Panama.  Most people use a commercial mailing service. References from your local accountant or attorney are also good to have, along with the same from your CPA and attorney back home. They will also ask the source of your funds.  If you have your Residency Visa or ID Card, that will more than likely replace the need for the above paperwork.

Do not use cash to open a bank account.  Have the funds wired in. Be aware that if you deposit a check from a U.S. bank account, that it may take up to three weeks to clear.

Debit cards will be issued when your account is opened. And most banks offer internet banking.

Panamanian banks offer accounts based on several currencies, including Euros, US Dollar and Pound Sterling, and checking as well as savings accounts are available.  There is no FDIC guarantee covering funds, however.