Special Features
Personal banking, Panamanian style
By: Staff at Panama Offshore Legal Services / E-Mail: info@pos-inc.com || Phone (507) 227–6645
Panama banks are economically strong and were not affected by the global economic crisis as banks around the world suffered losses. Panama has one of the most strict bank secrecy laws in the world. Foreigners can feel secure their bank accounts will be private. Newcomers will need several documents in order to open a personal bank account in Panama.
While some Panama banks may require different information they all want to know who their customers are and that the funds are from legal sources. By using a professional introduction by a law firm, you can increase your chances of being approved for a bank account. Choosing the right bank is important as some banks do not accept foreigners, some don’t offer online banking, multi-currency accounts, or debit cards. The law firm knows what each bank offers and will help choose a bank that will fit the client’s specific needs saving lots of time.
Once a bank is chosen, here are the general requirements:
- Passport copy including the photo and personal information pages and the Panama immigration entry stamp page.
- Copy of a second ID such as a driver’s license.
- Two financial reference letters from banks or investment brokerage firms in which the customer held accounts. These reference letters should be on original letterhead, dated within three months, addressed to the specific Panama bank, and signed by an officer of the bank or investment brokerage company.
- Two professional reference letters from lawyers, accountants, or financial consultants using the same format described above. Panama professionals will have greater weight than foreign ones.
- A copy of the last two years income tax returns.
- Fill out and sign the bank’s application form.
- A personal letter explaining the source of funds which will be deposited. This could include source of funds documents such as a copy of retirement or pension income, an annuity statement, or a letter from an employer.
Once all of these documents have been collected, an interview with a bank officer is required. A law firm will provide professional bank introduction and a translator if the banker does not speak English (which is very common).
Bank interviews usually entail why the foreigner wants to open the account and an explanation of where and from what source future funds will be coming from.
A compliance officer will contact references to verify them before approving the account which may take anywhere from a few days up to a few months.
Expect a minimum initial deposit to open the account ranging from $500 to $100,000, depending on the bank, and which department of the bank will be used. Choosing to open an account with the Private Banking department of a bank makes the minimum much higher, but the service and benefits are greater. The initial deposit can be done by cash or U.S. Dollar check.
Panama banks have a variety of credit and debit cards offering different credit limits and fees. If the foreigner does not have established credit history in Panama, banks will ask for 125% to be deposited of the monthly maximum credit amount. There are silver, gold, platinum credit cards with options for air miles or points systems.
Debit cards will generally have the option of the “MasterCard”, “Visa”, or “Clave” system. The fees for using debit cards vary between banks.
Panama banks offer savings and checking accounts. Some banks provide a savings book which requires visiting a branch of the bank with the book to make deposits or withdrawals. Other banks eliminated the savings book and use online banking and just a deposit or withdrawal slip when banking in person.
Panama law firms offer a “bank account introduction and processing” service for foreigners which includes the law firm’s professional introduction to the bank, plus the law firm assists with completing all the forms and due diligence documents in advance, provides a professional reference letter, and assists through the process, including follow up with the bank until the account is approved.
I’m told there is a saying in Panama that states “El tiempo se venga de las cosas gue se hacen sin su colaboracion.” Roughly translated—Time takes revenge on those things that are done without its consent. This made ol’Jack think that a sense of time might just be one of the big differences between Panamanians and tourists, foreign businessmen and retired ex-pats who have decided to spend some time down here on the isthmus.
The tourist who is frantic over how long it takes the waitress to bring a bottle of ketchup upon request; or the executive, who is completely put off by the fact that his meeting has actually started an hour and fifteen minutes late; or the expat, who is planning to move into a lovely condo with a city view next month, but isn’t delighted because it was promised in March 2011; or the expat party goer, who arrives a fashionable half hour late to discover the hostess is still in her housecoat; or the expat party giver, whose Panamanian guests have arrived after bedtime — all of these clock watchers obviously have not passed through the same time warp as the locals. If you remember, Hitler’s greatest accomplishment was getting the trains to run on time, and ever since people from more northern climes with digital watches have been obsessing on up-to-the-minute punctuality. In the tropics there seems to be a different attitude. Time is not considered a scientific principle. It’s more of a notion or a concept, more fluid (as in “go with the flow”) than rigid (as in punching a time clock).
Countdown to 100
This is Jack’s 96th column published in The Visitor.
An important thing for non-native time managers to realize is that the delivery guy, who didn’t arrive with the new air conditioner until 7:28 p.m.; or the contractor who still hasn’t installed the roof; or the government official, who still hasn’t explained where the money went; these guys don’t believe that they’re wasting time. They still intend to do the job. It will all happen in due time. Something came up — the wife needed the car; their kid got sick; there was a traffic jam (the most believable); the delivery didn’t occur; there was a street protest; it rained; it was November; or simply they didn’t believe that you believed that they believed it could be accomplished before it finally was.
My lovely wife has a saying that nothing in Panama gets done the first time. Officials always need additional documentation, while the repairman never has the necessary part. One of the reasons the occupancy permit was delayed was that all the windows broke when the building settled at the landfill called Punta Pacifica. It might take a while but it will get done. That’s the point—yes, time is money and everybody does get paid, eventually.
I don’t believe that Alexander Pope ever visited Panama, but he is credited with a quote about how time flies or flops, that might be relevant. “ ‘Tis with our judgments as our watches—none go just alike, yet each believes his own.”
My son… USNAVY
By Jacob Ehrler
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| Contact information for Machetazo de Coronado: 240-2040. Video available at lacascara.com and on Youtube.com. Also available at the end of the article. |
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“USNAVY” is the name with which a handful of Panamanian families christened their children. It is commonly understood that they were mistaken about the fact that all ships bore the name of notable people. It’s a sociological reflection of the US occupancy of the Canal Zone during nearly a century. The legacy of military occupation in Panama lives on today, like mist in the jungle.
Just as adverse climates are fertile grounds for irony, the heat and sunshine of warmer parts invite one to loosen up to a bit of good humor. And the proof of US occupation is in the punchline of one of Panama’s funniest jokes: the surprisingly high incidence of mothers naming their children after the name of some of the most grandiose ship’s they’d ever seen. Hence, the Usnavy’s were born.
Their mothers were typically countryside dwellers, more likely to be from the Pacific than the Caribbean side. Today, these children are the collective brunt of a joke that Panamanians love to tell about themselves. Panama is a young nation, and its nationals are lovers of discussing what it is to be Panamanian.
Panamanians love to laugh at the TVN Channel 2 show La Cáscara’s cartoon character named Usnavy. Through self-depreciating humor, Usnavy has become a publicity phenomenon, jumping out of the Saturday night slot and into a national campaign announcing the brand new Machetazo in Coronado.
From La Cáscara to la publicitaria
Usnavy is now a publicity phenomenon as the new image for the recently-opened mega store El Machetazo in Coronada, along Panama’s beach riviera not far from the city.
La Cáscara’s Usnavy character, a poor countryside dweller who follows the well-heeled steps of his ‘patrona’ on her visits to Coronado while the portly blonde woman sings the glory and benevolence of the new shopping offer: “It shall be the envy of all Coronado!”
Creator of La Cáscara:
Ubaldo Davis
Ubaldo Davis, productor de La Cáscara.
With his show La Cáscara, Ubaldo Davis has created a humor empire through an SNL-inspired Saturday variety and skit comedy show La Cascara. He has been dominating the prime time scene of Panama with his interpretations of vivid realities that everyday Panamanians live, exposing the humor that exists within the marginalized and multiethnic through his antihero characters “Fernando El Funcionario” and “El Panameño.” Davis reports no attempt to create stereotype, rather to show reality of certain sections of society.
Panamanian development sure has come a long way. And it is definitely product of the North American presence, and the now Panamanian Canal that it left behind. Panamanian society, although young, surely knows itself well. And there is nothing like laughing at one’s self. And it is this humor that keeps Panamanians striving forward, even if “far” is still just 45 minutes to Coronado.