Banking

Panama has developed over the past years as an important international banking center. There are various advantages that have contributed to its development. Some of them have been in effect for many years, such as:

• The absence of any exchange control on the inflow and outflow of capital.
• There is no central bank.
• The free circulation of the U.S. Dollar as legal tender.
• The territorial principle of taxation and its strict interpretation over the years in courts and by administrative authorities.
• Interest earned on bank deposits in Panama is completely tax free.
• Large number of foreign companies operating in Panama.
• The protection and confidentiality afforded to depositors.
• The development of the Colon Free Zone.
• Enactment of special banking legislation encouraging its development.

All banks operating in Panama require a license issued by the Superintendency of Banks, the regulatory and supervisory body, under stringent regulations.

The recently revised law regulating banking activities includes the Basel Directives on International Banking. For additional information, you may access the web page of the Superintendency of Banks, at www.superbancos.gob.pa.