Many people that are exploring the world of offshore banks may be interested in doing business with a Panama bank. There are some misconceptions about banking in Panama, so it is important for potential investors to know that banks in Panama have worked hard to clean up their image as a non cooperative tax haven.

The anti-money laundering laws in Panama have been tightened in recent years. The banking system that the new laws and regulations created is one of the most private and competitive of all offshore banks, but the international offshore banking community continues to monitor the banking industry in Panama, so investors know that all rules and laws are followed.

One of the biggest benefits to doing business with a Panama bank is the assurance that your money and your privacy are protected.

At one time, Panama was the home of over 150 offshore banking companies. Since the reforms that were instituted in the mid 1990s, that number dropped to just 80 banks. The banks that survived the reforms have a high level of legal compliance.

They work with the international banking community to report banking activity that may be part of a criminal enterprise, but they still maintain strict confidentiality of all legal account holders. Placing your money in a Panama bank is a legal and safe alternative to domestic banks.

Placing your money in a Panama bank will give you definite tax advantages. While you have to pay taxes in your home country on money before it is deposited in your bank account, it is allowed to grow tax free. All interest in placed back in your Panama bank account is not subject to being taxed. You do not have to live or conduct business in Panama to benefit from the tax advantages and privacy protection that a Panama bank can offer.

No matter what type of offshore bank account you need, there is a Panama bank that can accommodate you. You can open business and personal accounts in addition to setting up special merchant accounts. Even if your money is in a Panama bank, you will still have access to you account using a secure Internet connection.

You can use the Internet to transfer money between accounts and to perform other banking transactions. For even easier account access, many Panama banks offer ATM an debit cards in addition to international checking accounts.

Opening a bank account in Panama requires a minimum deposit that varies according to the bank rules. Some banks also have minimum balance requirements in addition to the minimum deposit rules. If the balance drops below the minimum, some banks will charge hefty fees.

There are many options to choose from if you decide to open an account with a Panama bank. Your choices include incorporating as an IBC or offshore company or opening a personal account. Most banks require that you prove your identity. This proof can be a notarized copy of you passport. You may also need letters of reference from your current financial institution.