This is an interesting perspective on Panama and how we must deal with the perception and realities of being a country with a banking system that still provides for confidentiality. This in from CentralAmericaData.com
If Panama does not efficiently and effectively provide the information required by foreign authorities, it will worsen the current perception of noncooperation.
An analysis of this thorny issue made by Carlos Barsallo, president of the National Securities Commission, makes clear that since 1949, with the adoption of Act 62 of 1938, Resolution 38 October 1949 and the reform of the Tax Code 1957 and subsequent regulations, has the clear purpose of turning Panama into an offshore financial services center (commonly known as a tax haven).
Barsallo notes that, beyond the hypocrisy of many governments now branding Panama as a tax haven, the general vocation of its financial system is precisely to provide services “solely based on confidentiality and non-international cooperation.”
Regarding the measures taken by Panama in recent years, such as the signing of bilateral tax information exchange and other internal rules to reform the system, Barsallo says that now the question is whether to put into effect those actions, which undoubtedly “will be to the liking of some and not to others.”
“If it provides the required information Panama may begin to overcome the problem of international complaints about lack of cooperation, but end users of the services that Panama offers who have made their decision to use Panama, exclusively based on confidentiality and Panama’s international cooperation are likely to reconsider their decision. ”
Source: Prensa.com
Anyone using Panama as a tax haven with an incorporation AND a Panamanian bank account will be disappointed in just a few short years, assuming they have waited this long to get started. The bureaucracy of being a US citizen and opening an account domiciled in Panama has doubled. They are collecting full due diligence now, and as you can see, some people are specifically targeting the legislation that needs to stay in place- (kind of like how the Glass-Steagle Act needed to stay in place). So any good PT(Possibilities Thinker, Permanent Traveler, Prepared Thoroughly) seeking to create privacy should utilize the fundamentals offered by the 6 flags theory. Meaning, unless you NEED a Panama bank account for a local business or because you’ve immigrated, go ahead and forget about opening a Panama bank account. It’s simply more hassle, and other banks will ask more questions, meaning you’ll have to do more paperwork to move big bucks. Account opening in Panama was already slow, a likely result of their notoriously poor customer service, plus their on-line banking is in Spanish, with the exception of Multi-bank, whom is now unfriendly to US opening.
One thing is for certain, you would be very unhappy if you were always trying to run from TIEA agreements in order to hide. I tell you this being someone who firmly believes in your right to privacy and tax exemptions. So let’s figure out a way to legally- compliantly- create tax exemptions across multiple jurisdictions (countries) so that your wealth is truly untouchable and nontaxable.
Consultations and solutions are available as well an EXTENSIVE due diligence library, logistics facilitation, and virtual secretary assistance SPECIFICALLY for U.S. Citizens at http://www.howtobuygoldoffshore.com
And if you are not a US Citizen, then congratulations my friend, because going offshore just got easier. Pay us a visit, you’ll be glad you didn’t wait.
Best,
Ellen Ring
The Panama Insider