How to Open a Bank Account in Panama as a Colombian

Panama is recognized as an international financial hub, and opening a bank account here offers numerous advantages for Colombians:

• Access to the international market: Perfect for those conducting business or investments globally.
• Reliability of Panamanian banking: Its highly developed banking sector provides stability and modern services.
• Ease of transacting in US dollars: Panama’s dollarized economy minimizes exchange rate concerns.
• Financial privacy: While there are now tighter international controls, Panama still offers a certain level of confidentiality.

These benefits make Panama an attractive financial destination, but it’s important to operate within the legal framework.

While each bank has its own policies, the general requirements for Colombians to open a bank account in Panama include:

• A copy of your passport (including all used and updated pages).
• Bank reference letter from a financial institution in Colombia or another country where you hold active accounts.
• Personal reference: At times, banks may request letters from individuals with established accounts in the Panamanian bank.
• Proof of income: Tax returns, employment contracts, or proof of regular income.
• Proof of address: Such as a utility bill or rental agreement.

Banks may also carry out additional due diligence procedures, such as personal interviews or requests for extra documentation, to comply with anti-money laundering and counter-terrorism financing regulations.

When opening a bank account in Panama, it’s essential to meet legal obligations in both Panama and Colombia:

1. Declaration of Foreign Assets

Under Colombian law, citizens with foreign assets must report them annually through the Declaration of Foreign Assets. This includes bank accounts, properties, and investments, among others.

2. Financial Information Exchange

Due to international agreements like the CRS (Common Reporting Standard), Panama shares financial information with Colombia. Banks submit account data to the Panamanian government, which is then shared with the Colombian DIAN.

3. Legality and Best Practices

Contrary to the myths ignited by the Panama Papers scandal, holding an account in Panama is entirely legal, provided you comply with the tax and regulatory requirements of both nations.

To streamline the process of opening a bank account in Panama as a Colombian, consider the following practical tips:

1. Research the banks available: Popular options include Banco General, Banistmo, and Global Bank. Look into which one offers services tailored to your needs.
2. Choose banks where you already have relationships: If your current bank operates in Panama, this could expedite the process.
3. Be prepared to answer questions: Banks may require detailed information regarding how you plan to use the account, especially for significant deposits.
4. Consult a legal advisor: A professional can guide you through the compliance process and help you avoid potential penalties.

By following these recommendations, you can significantly reduce waiting times and effectively enter the Panamanian financial system.

There are many myths surrounding opening accounts in Panama. Here we clarify the most common ones:

1. Is it illegal to have an account in Panama?

False It's not illegal, as long as you properly report your assets to the Colombian government.

2. Is my financial information completely confidential?

In part. While Panamanian banks protect your privacy, they must comply with international information exchange regulations.

3. Is Panama a tax haven?

This depends on the context. Panama has implemented strict measures to combat abusive tax practices and align its system with international standards.