Panama Banking Requirements - When you are in Panama, visit the banking district and you will be amazed at just how many banks are operating in this tiny country. And these are not just Panamanian banks but banks from all over the world. But why is this? It is because of the very favorable Panama banking requirements for non-resident banks plus it has a very modern banking system.

Panama has also taken measures to control foreign money laundering and the financing of terrorist activities through its support of the Financial Action Task Force (FATF) and Organization for Economic Cooperation and Development (OECD). The measures now require Panamanian banks to report all deposits in excess of $10,000.00 to the authorities just as is done in American banks.

Panama is trying to avoid any image of being anything less than a reputable and ethical banking center. For example, there is the "know your customer" policy in which new customers must disclose the source of their money and references. Panama is also a very secure offshore banking center making it even more attractive.

Many other policies and laws have been implemented in the Panama banking requirements to include:

1)Law 41 which classifies and defines money laundering with other types of serious crimes.
2)Law 42 which establishes accountable persons in banking transactions
3)Law 45 addresses banking crimes such as fraudulent contracts, concealing books, illegal wire transfers, etc.
4)Executive Decree No. 78 that changed the name of the Financial Analysis Unit to one that is more indicative of the new direction in Panamanian Banking: The Financial Analysis Unit for the Prevention of Money Laundering and the Financing of Terrorism.

In the days of the ruling de facto leader General Manual Noriega, the talk among the regular folks was that there was a lot of money laundering taking place in Panama and that was the reason for so many banks. Whether it was true or not, we may never know but it is irrelevant today. With the Panama banking requirements today the right steps have been taken to insure that it is viewed as a respected banking leader on the world market and a trusted commerce partner.

With all of this change they still have a smile on their face and are a pleasure to do business with!