So you own a Panamanian Corporation and have bearer shares issued in your name sitting in your safe and you are off the grid, so you think.  The new law that will be implemented, not if but when, will require custodial care and registration of your shares with the government.

The immobilization of bearer shares planned by the government of Panama in order to meet OECD requirements, has opened up business opportunities for banks.

The “Bill to adopts a system of custody for shares issued to the bearer” being studied by the Martinelli administration, includes the creation of the position of custodian of bearer shares, which could be a lawyer, a bank , a brokerage firm or fiduciary who knows and has separate records of the owners of these instruments. Failure to have these records would mean fines for custodians.

Capital.com reports that “lawyers insist that the initiative would generate huge losses for the country. On the other hand, the Government is warning that if these changes are not approved, the country will be branded as uncooperative in taxation terms and that will bring greater problems. ”

“The banker Rolando De Leon, a member of the Banking Association of Panama, in accordance with this association’s official position, believes that Panama is prepared for the release a this model of custodian information bearer shares, as the country has experience in financial services, allowing it to adapt in a timely fashion to the new scheme. DeLeon sees even the possibility that his fellow bankers could be custodians and evaluates this as a positive. “That would mean a significant revenue source on services’, he argues. ”

Source: Capital.com.pa