You are here :: Panama Real Estate » Banking-and-financing » Panamanian-banks-and-laws

In the intensely bright sun, the skyscrapers in the center of modern-day Panama City gives the appearance of miniature version of Manhattan. In stark contrast, however, is the fact that Panama is the second largest banking center in the entire world. With more that 150 banks from over 35 countries, trails only Switzerland in international banking. The Republic of Panama has taken an active role in protecting Panamanian currency from money laundering and funding of international terrorism. Panamanian banks lead the world in the combination of security and size of market and are especially valued for Panama real estate financing.

Panamanian banks have also been aided by changes in the Republic. Panama's new banking law meets the requirements of international banks for transparency and regulation. Panama has taken a lead role in supporting the FATF and OECD movements to enact measures to minimize illegal banking activity. Panamanian banks have also moved to tighten reference requirements and identify origin of funds. These efforts help to keep Panama currency strong and such services as Panama real estate financing strong.

Panama Banking Laws

In addition, the combination of the banks and the Panama Stock Exchange give Panama perhaps the strongest, most secure offshore centers in the world. Laws 41, 42, 45, 48 and 50 regulate a variety of banking concerns, from money laundering and accountability for due diligence, to defining banking-related crimes and identifying responsibilities with regards to use of international banks to finance terrorism. The effect of these laws is as follows:

Law 41 - Enacted October 2, 2000, this law defines the crime of money laundering with regard to qualified fraud, illegal trafficking of humans, kidnapping, extortion, embezzlement, corruption of public officers, acts of terrorism, international theft and drug trafficking.

Law 42 - Enacted October 2, 2000, establishes the term "accountable persons" with regards to due diligence for a wide variety of financial and stock market related personnel.

Law 45- Enacted June 4, 2003, added under the heading of Financial Crimes, fraud, illegal money transfers, concealing, deleting and counterfeiting accounting books and related documents.

Law 48- Enacted June 26, 2003, regulates the operations of money remittance companies.

Law 50- July 2, 2003, by which Chapter VI, denominated Terrorism, is added to Title VII of Book II of the Penal Code and sets forth other provisions, This Law defines the crimes of terrorism and the financing of terrorism, turning both into autonomous crimes in our legislation.

Increased Stature for Panama Banks

In the financial industry of Panamanian banks, there are many various investment opportunities including banking, Panama real estate financing, insurance and re-insurance. With Panama's adherence to international laws and commitment to fight money laundering and international terrorism, this sector will continue to grow as more investors become aware of the benefits and opportunities available in Panama.

Panama Banking Security

Panamanian banks have become world-class in their security, their commitment against the use of Panamanian currency from terrorism and their resistance to money from other illegal activities. The construction boom will continue to fuel the Panama real estate financing efforts as will the work of the Panamanian government to attract foreign retirees, coupled with its incredible weather, beautiful wildlife, and openness to people from other countries, Panama will continue to be a force in the international financial market.

We have all been forced to pay taxes as the old saying goes "the only sure things in life are death and taxes" is really a misnomer here in Panama. Panama is a country that encourages foreign investment and has long been known for being a reliable tax haven and for its safe Panama banking. In 1998 they passed the Investment Stability Law, which protects foreign investors from changes in tax, customs, municipal and labor rules for 10 years from the date an investment is registered. Other advantages include no taxes for foreign-earned income, a 15 year exemption on Panama property taxes for newcomers who buy or build a new house and retirees get a one time exemption of duties for importing up to 10,000 worth of household goods. Now, after reading this article I can safely say that paying unwarranted taxes is over... now how do I circumvent the death part.