As governments in many countries have weakened privacy laws, people search to find privacy and security for their information, both personal and corporate. While asset protection is currently the topic in both corporate and private sectors, the trust structures of many countries have either been weakened or dramatically damaged. In light of these invasions of privacy, Panamanian banking has become a better option and the best for both asset protection corporations and offshore banking is Panama.

Panama implemented laws in 1995 to create the Panamanian Foundation. Though new, it was patterned after the Foundation structure of Liechtenstein, which has successfully existed for quite some time and has been a valuable asset protection vehicle. It actually offers benefits superior to the Liechtenstein; Panamanian Foundation is much cheaper to establish ($3,000 for Panama as opposed to $10,000 or more for Liechtenstein), it is cheaper to maintain a Panama Foundation and it offers more flexibility while protecting the assets of the holder. This can actually all be done by a Panama attorney without the client's presence in Panama.

In order to understand the foundation structure, it is important to first understand the difference between a trust and a corporation. Trusts are typical in common law countries and used as a haven in estate planning. The common interpretation of trusts is that they are actually, in the eyes of the court, unique individuals and have rights under the law. Because of the legal interpretation of trusts, they offer little protection for those who hold them. Conversely, most people create corporations as a vehicle to reduce tax liabilities and protect their assets from lawsuits or claims against their estate. The corporate entity is used worldwide to protect its assets and liabilities separate from the personal wealth of the owner. The key point is that the corporation's assets and liabilities of are separate and distinct from those of the shareholders.

It is also important to note something else; English speaking countries typically use Common law and many non-English speaking countries traditionally use Civil Law. The Panamanian Foundation structure offers some of the best benefits of both the trust structure and offshore corporation in one; in addition, since Panama is a Civil Law country, it is believed by many to be a better choice for those people who reside in countries that are under the jurisdiction of Common Law. (Such as the US) Because of these benefits, an offshore Panamanian Foundation can be an excellent means of asset protection for many Americans.

More and more people are seeking asset protection, both personally and corporately, in offshore Panamanian Foundations. Panama has become the second largest banking center in the world (behind Switzerland) and possesses perhaps the best secrecy laws. In Panama, it is possible both for a person to privately protect his assets without anyone knowing the owner and for a corporation to hold and protect the assets of an individual without anyone being able to ascertain their identities. This high level of asset protection makes offshore Panamanian Foundations a great business service in Panama for people in many other countries.