Myths of the Panamanian Bank Accounts

Panamanian bank accounts are often surrounded by myths and taboos. In this article, part of our Panama Bank Account series, we aim to dispel some of these myths and provide clarity.

Also, don’t forget to visit our Frequently Asked Questions about bank accounts in Panama.

Myths

Panamanian banks have long been shrouded in intrigue and mystery, thanks in part to their association with offshore banking and media portrayals in movies and TV shows.

This has led to the development of several myths surrounding them, some harmless and some with negative implications.

Here are some of the most common myths about Panamanian banks, debunked with the true facts:

Myth: Unfounded Belief that Panamanian Banks are Designed for Money Laundering and Criminal Acts

Fact:

One prevalent misconception about bank accounts in Panama needs clarification.

Whether you use your driver’s license or the local neighborhood cafeteria, the decision lies entirely with you.

It is crucial to emphasize that obtaining permission to open a cafeteria or receiving approval for a driver’s license does not grant authorization for engaging in illicit activities, such as selling illegal substances at the cafeteria or causing harm with a vehicle.

Similarly, when opening a bank account in Panama, the responsibility for engaging in or abstaining from criminal acts lies solely with the account holder.

It is essential to recognize that the regulations and controls imposed by Panamanian banks are designed to initiate investigations when criminal activities are suspected, ensuring accountability for any misuse of a Panamanian bank account. Consequently, engaging in illicit activities using such accounts is likely to be detected and addressed sooner or later.

Myth: Opening a bank account in Panama is illegal.

Fact:

Nothing could be further from the truth. Contrary to this misconception, the reality is quite the opposite; the process of opening a bank account in Panama is entirely legal.

The Panamanian banking industry operates under strict regulations and adheres to numerous quality controls. Furthermore, banks undergo monthly supervision to ensure compliance.

Therefore, opening a bank account in Panama is a legal procedure, akin to obtaining your driver’s license or establishing a coffee shop in the corner of your neighborhood. Opening an account here is similar to opening one in another country, with similar due diligence procedures and legal requirements.

Myth: Opening a bank account in Panama is only for Millionaires.

Fact:

It’s important to clarify that bank accounts in Panama are not exclusive tools reserved solely for the affluent.

While some banks may target high-profile clients, individuals with average incomes can readily open and maintain a bank account in Panama as a fundamental financial tool.

Opening an account can offer benefits like access to US dollars, international money transfers, or potential investment opportunities in a stable economic environment.

Opening a bank account in Panama is definitely not exclusive to millionaires.

Myth: Panamanian accounts aren't safe.

Fact:

Panama has a well-established and regulated banking system, with international oversight and strong anti-money laundering laws. Your money is generally safe there, particularly with reputable banks. However, as with any investment, risks are always present.

Myth: Panamanian bank secrecy allows complete anonymity.

Fact:

While Panama does have stricter bank secrecy laws than some other countries, it is not a haven for total anonymity. Authorities can access information under certain legal circumstances, and Panama adheres to international agreements on fighting financial crime.

Myth: All Panamanian banks are involved in shady activities.

Fact:

The vast majority of Panamanian banks are legitimate institutions offering a range of financial services. Like any industry, there might be isolated cases of misconduct, but they do not represent the banking sector as a whole.