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A phenomenon of sorts has been occurring in Panama. This small country was once known for its reputation as a tax haven like Belize or Bahamas. A series of developments has propelled Panama into the forefront of the international business world as Panama business services provide protection for investors through their asset protection corporations and Panama foundations. Panama's business services have allowed for people who live or invest in Panama to also have the additional security of using legal, financial and business experts to protect them and their interests.

The strength of Panama's financial and business efforts lies in its structure and legal standing. The country has developed laws that allow for secure transactions without compromising either a person's assets or identity. This strength is built on four factors.

1. Offshore banking
2. Asset protection corporations
3. Panama foundations
4. Government guidance

Panama didn't invent offshore banking but they seem to have perfected it. The identity protection laws that Panama has to govern their banking are the best in the world, far surpassing anything that exists in countries like the US and Canada. The government of Panama does not interfere in banking activity and does not permit the governments of other countries to do so either. Offshore banking is a very important part of the asset and identity protection plan here and the Panamanian government stays out of people's banking business.

This business model is very unique and also a very important part of Panama's business service structure. This type of company is an anonymous ownership organization, where the owners are identified only by printed paper shares. There is neither record of ownership or leadership. Many people use these asset protection corporations to buy property and when they decide to sell, they simply sell the corporation. By doing this they avoid the 2% transfer tax on the property.

These entities are similar to trusts, only better. Patterned after the Lichtenstein foundations, Panama foundations are better than the Lichtenstein in cost to create and maintain, and they are better than trusts because of their identity protection. In addition these foundations are not viewed as human entities by Panama law and therefore do not have to report their leadership and activities like trusts do.

This proved to be a very important part of the business service model. Because Panama's government has enacted many pro-business laws, companies are able to operate without heavy interference. In addition, Panama's government does not enter into cooperative treaties with other countries, so no other government can pursue funds in Panama to satisfy tax liens or civil judgments. In addition, Panama has strict attorney / client privilege laws that eliminate virtually all attempts to elicit information from Panama business service representatives like attorneys.

With the evolution of the Panama business services, the country has become a powerful force in the business world. created a powerful offshore banking locale and also has asset protection corporations and Panama foundations that help to protect the assets and identities of the people that hold them.