International Business Opportunities

International remittance company for sale
An electronic payment company and an expert in secure, real-time electronic transactions, the company has a license from the Ministry of Commerce of Panama to handle large numbers of small remittances in Panama and internationally, as well as bank accounts approved at Panama banks. Money sent home by migrants in remittances - of US$300 million yearly - constitutes the second largest financial inflow to many developing countries, exceeding international aid. The company also provides stored value card and credit card solutions to businesses, government, consumers and financial institutions with security, efficiency, and competitiveness, while reducing their costs.
Assets include US$50,000 in Panama bank required by law to maintain the remittance license.
Investment requirement: US$150,000
More information about remittances in
http://en.wikipedia.org/wiki/Remittance
http://remittancesgateway.org/
http://blogs.worldbank.org/peoplemove/


1998 BVI ready-made shelf company
A 12-year old British Virgin Islands International Business Company with nominee directors and nominee shareholders is for sale. Price includes payment of reactivation fees.
A seasoned BVI company offers...
1. Credibility with Financial Institutions ­ as a result of its age, a BVI company can establish relationships easier with major financial institutions such as banks, brokers, and credit card companies to secure more favorable terms for your operations.
2. Credibility with Clients ­ by leveraging the credibility of a vintage BVI company, you will position yourself as the owner of a successful business vehicle.
3. Credibility with Partners and Competitors ­ the pedigree, age and descent of a seasoned BVI company create 'a micro climate' for its operations inspiring respect and admiration from both business partners and competitors.
Investment requirement: US$20,000
More information about BVI companies in http://www.bvifsc.vg/


High-yield private placements
Placements available to high end, accredited investors supported by a combination of high yield and short term investments. These private placements yield substantially higher returns than
bank certificates of deposit, most corporate bonds and mortgages. The company has a flawless payment history and stability without the inconsistency of the mortgage markets, bonds backed by real estate or hedge funds. Short term instruments (two years or less) provide guaranteed yields of 10% - 12% per annum
Rates of Return: One Year = 10% per annum (Two Payments of 5%).
Two Years = 10.25 % per annum (Four Payments of 5.125%). Semi-Annual Distributions.
These are unregistered, uninsured securities and are appropriate for sophisticated, accredited investors only who meet qualification standards and minimum net worth requirement. This Information is not an Offering or a Solicitation to Buy or Invest under any Securities Act.
Minimum Investment: $150,000 (USD) or equivalent, in any major currency.


Small Caribbean bank for sale
Ideal for acquisition, significant shareholding, joint venture by a family office or Trading Group wishing to monitor control of their funds or by another bank. The Bank itself is run by a small number of staff with good contacts built over a period of time.
Acquisition price for 100% of the Bank is $3.5 million.


Merchant Accounts for Credit Card Processing
Merchant Accounts by banks in Belize, Cyprus and Germany, offer Credit Card Merchant Processing to foreign companies. Companies should consider Electronic Commerce as an "added value" to its particular means of making business, since it will receive unlimited advantages from a market that opens the doors to a world with endless possibilities and, what is better, to potential customers.
The electronic commerce offers our customers the advantage of selling their products and services through Internet, using the most advanced technology allowing the globalisation of their company.
Subject to full due diligence and compliance with know-your-customer rules.
Minimum Investment: $20,000
More information about merchant accounts in http://en.wikipedia.org/wiki/Merchant_account

For further information about these opportunities, email serious inquiries to info@ uspanamatrade.org

The information listed was provided by the promoters of each investment opportunity. Whilst every effort has been made to ensure that the information contained herein is correct, we accept no responsibility, legal or otherwise, for any errors or omissions. This material is provided for general information purposes only and does not constitute investment or other professional advice. We accept no responsibility for any loss which may arise from reliance on this information and we make no warranty, express or implied, regarding the availability of any product or service in any country. This information should not form the basis of any decision as to a particular course of action; nor should it be relied on as investment advice.

The information contained herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would result in requiring any registration requirement within such jurisdiction or country. It is the responsibility of such persons or entities to ascertain the terms of, and comply with, any local taxes, laws or regulations.

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More information available by email to mailto:aaguilar%20@%20nysbar.com or Skype

BNP Paribas Latin downsizing may provide private banking opportunity

BNP Paribas (Paris: BNP .PA) has sold their local Panama business to Scotiabank (TSX:BNS) Panama. At the time of local press report, BNP had yet to find a buyer for the private banking and trust business served from Panama for the benefit of Latin American offshore beneficiaries. The small size of a Panama branch makes this market currently unattractive to multinational mega-banks.

Based on the experience from past closures of Panama branches of European banks, this could be an opportunity for private bankers seeking to acquire a portfolio of Latin American clients.

The Panama media originally reported that the closure was based on the blacklisting of the Panama banking system by the G-20 as described by French bank officials. However, the closure of the Argentina branch which has not been blacklisted and the drop in BNP Paribas makes the explanation by French bank executives unlikely.

If the G-20 black list forced BNP Paribas to sell its Panama branch, why did BNP also sell their Argentine branch after doing business for 95 years?

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BNP Paribas vendió negocios locales

EDITH CASTILLO DUARTE
ecastillo @prensa.com

El banco canadiense Scotiabank concretó la compra de las operaciones de banca corporativa del BNP Paribas, pero aún no hay acuerdo para los negocios de banca privada y de fideicomisos.

El gerente general de BNP Paribas en Panamá, Christian Giraudon, dijo que está "en contacto con varios bancos locales y extranjeros para la cartera de banca privada y fideicomiso, proceso que sigue abierto y todavía tomará un par de semanas".

En una operación paralela, el panameño Credicorp Bank logró cerrar ayer la compra del edificio que albergaba­ antes de mudarse a Punta Pacífica­ las operaciones de BNP Paribas en la Vía España.

Banking crisis wipes 56% off BNP Paribas profits

BNP Paribas sells its retail banking business in Argentina to Banco Santander Río
This network consists of 17 branches in the City and Province of Buenos Aires and offers services to more than 30,000 private customers and 900 corporations.
"BNP Paribas has been present in Argentina since 1914 and remains committed to its corporate clients in the country. The bank will focus exclusively on providing its extensive platform of products and services to corporate clients and institutional investors," BNP Paribas reported.

Panama bank offers gold for sale to the public

Panama: Credicorp Bank Now Offers Precious Metals

Source: Prensa.com
Thursday, December 3, 2009

The bank will offer its investment clients gold and silver bars and coins.
The product was born as a request from the customers, who demanded investment alternatives, specially in gold, a commodity whose price has grown around 60% in the last 12 months.

"Called 'precious metals' the product comprises the sale of gold and silver bars and coins, refined exclusively for Credicorp Bank (BVP: CRED) and certified by Swiss company Argor-Heraeus", reported Prensa.com.

According to the newspaper, Credicorp is the first entity offering this product in Panama.

• Read more at the source article by Edith Castillo Duarte (only in spanish)
• http://www.martesfinanciero.com/history/2009/12/08/dossier_3.asp
• http://www.laestrella.com.pa/mensual/2009/12/03/contenido/176541.asp
• http://www.laglex.com/htm/en_so.htm Opening bank accounts in Panama
• http://lawyerfuture.blogspot.com/search/label/bank%20account

5 Panamanian banks with worst customer service

Considering that in other countries the Republic National Bank of New York was involved in money laundering and the list of failed banks keeps getting longer, Panama is known as a country with adequate financial supervision and a tough place where to open a bank account.
When it comes to customer service, Panamanians are very demanding. In a 3 million people country with 100 banks, customers swap stories about which banks have better or worst service.
A local survey finally came up with the list of the 5 banks with the largest number of customer service complaints. The winners (or losers) are
HSBC http://www.hsbc.com.pa/ (25,7% of those polled),
Citibank http://www.citibank.com/panama/
Banistmo http://www.banistmo.com/ (now acquired by HSBC, further increasing its lead)
Banco Nacional de Panamá http://www.banconal.com.pa/
Caja de Ahorros http://www.cajadeahorros.com.pa/ .

The common element in the worst 5 is that they are US-owned or Panama-government owned. Panama shareholder-owned banks such as Banco General, Credicorp, and Banvivienda are not among the top 5 and their e-banking systems are very good.

If a written complaint to the bank has not been anwered satisfactorily after 30 days, customer service complaints must be submitted to the Superintendencia de Bancos, which has in their website:
- New Guide for Claims in Spanish
- Recommendations for Customers in English
- Customer Complaint portal in Spanish

An acountholder is always free to:
- File a Criminal Complaint (if misappropiation or a felony occurred) before the Department of Judicial Investigations DIJ
- File a Civil Complaint in court through an attorney. If a complainant really wants to get even, a bond for 20% can be posted of the amount claimed in order to seize assets from the bank for the duration of the case.

A Spanish translator is always needed because complaints are only handled in Spanish.

Capital Financiero printed an article on the survey.

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BANCOS Y CLIENTES
Evalúan sector bancario
La firma encuestadora Dichter & Neira realizó a solicitud de Capital una encuesta con la finalidad de conocer la penetración de productos y servicios bancarios en Panamá.
En tal sentido se realizaron entre vistas a 420 clientes y a 109 banqueros de la plaza. La investigación se hizo vía telefónica durante el período comprometido del 23 al 26 de junio de 2009.
En el estudio se preguntaba a los clientes si había hecho algún cambio en sus hábitos por la crisis y el 90 % dijo que no y un 9.1% que sí.
Un 28,3% de los encuestados dijo también que hizo cambios, principalmente en el sentido de gastar menos, 15,2% que usó menos su tarjeta de crédito y 8,7% dijo que eliminaría su tarjeta.
Sobre la preferencia para elegir entre un banco y otro, más del 50% de los clientes consultados respondió que elegía en base a los tipos de interés, gastos bancarios y la atención que brindara el banco.
En cuanto a cuál era el banco preferido para depositar su dinero, el 65,5% se enfocaba en bancos grandes y el 21,9% le era indiferente y el resto se enfocaba por los pequeños.
Dichter & Neira fue más allá y pidió a los encuestados que dijera en cuanto a tamaño cuál era de su preferencia. En tal sentido, el 65,5% se orientó a los bancos grandes, 12,6% pequeños y 21,9% le era indiferente.
Sobre la satisfacción con la atención y servicios, hay que tener presente aclara la firma encuestadora, que el panameño es condescendiente y por ende califica un poco más alto de lo que en realidad piensa.
En tal sentido de las 420 personas encuestadas un 7% calificó como excelente la atención de los bancos, un 49% la calificó como buena y un 38,9% como regular.
La misma pregunta, pero dirigida a los banqueros, reportó solo un 2,8% como excelente, 64.5% como buena y 32,7% como regular.
El estudio también se enfocó en los servicios en línea que ofrecen los bancos de la plaza. Un 21,7% de los clientes lo calificó como excelente, 57,1% como buena y 18,8% como regular.
Otras de las preguntas en esta investigación fue: ¿Ha interpuesto alguna queja o reclamo por los servicios del banco? Un 91,9% dijo que no y 8,1% dijo que sí. El banco HSBC, concentró el mayor número de quejas de los encuestados (25,7%); seguido de Citibank, Banistmo y Banco Nacional de Panamá.
Pero en qué consistían las quejas de los usuarios de los servicios bancarios, el estudio reveló que un 17,6% se relacionaban con transacciones mal hechas, 14,7% por problemas con su tarjeta y demora en la entrega de documentos y un 11,8% tuvo demoras en sus transacciones.
Al evaluar a los clientes sobre las tasas que cobran los bancos, la mayoría consideró que son razonables.
Capital también pidió a la empresa encuestadora que buscara reacciones en la banca en el sentido de conocer la situación del sector bancario panameño. El estudio realizado constató que los bancos filtran más los clientes que antes (64,6%).
Un 60,6% de los entrevistados vía telefónica dijo que los bancos ponen más dificultades en la solicitud de créditos que antes, también se respondió en mayoría que no se otorgan crédito como antes.
Sobre los productos que se impulsarán este año, los banqueros consultados dijeron en un 23,4% que los préstamos hipotecarios y un 20,6% los préstamos personales y 11,2% las cuentas de depósitos.
En cuanto a la percepción sobre los controles del sistema, el 76,6% de los banqueros consultados dijo que la banca panameña tiene algunos defectos en sus controles que permiten que haya lavado de dinero.

Draft translation
BANKS AND CUSTOMERS Evaluate banking sector
The Dichter & Neira polling firm conducted a survey application for Capital in order to meet the penetration of banking products and services in Panama.
As such views were conducted among 420 clients and 109 bankers in the Square. The research was done by telephone during the commitment period from 23 to 26 June 2009.
The survey asked customers if they had made any change in habits by the crisis and 90% said no and 9.1% yes.
28.3% of respondents also said they made changes, mainly in the sense of spending less, 15.2% used less than credit card and 8.7% said they would remove your card.
On the preference to choose between a bank and another, over 50% of customers surveyed said they chose based on interest rates, bank charges and the care provided by the bank.
As for what the bank preferred to park their money, 65.5% focused on big banks and 21.9% was indifferent and the rest focused on the small.
Dichter & Neira went further and asked respondents to say about what size was his preference. In this regard, 65.5% was directed to large banks, 12.6% small and 21.9% was indifferent.
On satisfaction with the care and services, keep in mind clarifies the polling firm, that the Panamanian is condescending and thus slightly higher scores than they actually think.
In that sense the 420 people surveyed by 7% scored excellent attention from banks, 49% called it good and 38.9% as fair.
The same question, but addressed to the bankers, reported only 2.8% as excellent, 64.5% and 32.7% as good as regular.
The study also focused on the online services offered by banks in the market. 21.7% of clients described it as excellent, 57.1% and 18.8% as good as regular.
Other questions in this study was: Has a grievance filed by the bank's services? 91.9% said no and 8.1% said yes. The bank HSBC, the largest number of complaints of respondents (25.7%), followed by Citibank, Banistmo and National Bank of Panama.
But what the "complaints from users of banking services, the study revealed that 17.6% were associated with bad transactions made, 14.7% for problems with your card and delayed delivery of documents and 11, 8% had delays in their transactions.
In assessing clients about the fees banks charge, the majority considered reasonable.
Capital also asked the survey company to seek feedback on the bench in the sense of knowing the status of the Panamanian banking sector. The study found that the filter banks more customers than before (64.6%).
60.6% of those interviewed by telephone said the banks put more difficulties in the application of provisions previously, a majority also said they are not given credit as before.
On products will be promoted this year, bankers polled by 23.4% said that the mortgage loans and personal loans 20.6% and 11.2% of deposit accounts.
Regarding the perception of system controls, 76.6% of bankers surveyed said the local banking system has some flaws in their controls that let you have money laundering.

.

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More about the worst 5 in:

Google: 54,500 results for "HSBC sucks"

http://pa.banquejas.com/: Website for bank complaints (guess which is the leader in comlaints)

Forospanama.com: Forum on worst customer service in Panama (U.S. Consular Section is a favorite)

How to open an offshore bank account

Wednesday, 20 May 2009 14:51

Have you ever thought about opening an offshore account? It is not as difficult as you may imagine. You can do it in a relatively short period of time and without ever going abroad. An offshore account will help you reduce your tax liability, get a higher return on your investments or simply keep your affairs private. Essentially, an offshore account means a bank account in a foreign country. It offers benefits such as international access to your money, better protection of assets or a higher return on your investment no matter where you live. If you are interested in opening an offshore bank account, follow these guidelines. 1. Choose a country for your offshore account. Banking rules vary from country to country, so you need some guarantee that your hard-earned money will be safe. Nowadays there are over 50 countries and territories that specialise in offshore activity. In the Cayman Islands, it is a popular joke that there are more banks than people. 2. If you don’t want to spend time searching through the various rules and regulations, select a specialised company or financial advisor that will help you set up your offshore account. Companies such as Cayman Banking Services, Maritime International and Delta Quest can advise you on an appropriate bank depending on your requirements, account activity, and amount of funds. 3. Choose an offshore bank. Large, international banks often offer greater security and more services, but they charge higher fees. Be sure to ask if you will be able to access your account by the internet. This will enable you to make payments, check your account balance and initiate transfers from anywhere around the globe. 4. Decide what type of offshore account you want to open: a traditional savings account or a current account. Some banks also offer credit cards, debit cards, ATM cards and safety deposit boxes. Take into consideration what kind of fees will apply, whether you have to maintain a minimum account balance, and of course what interest rate the bank offers. 5. Fill out forms required to open an account: applications, one or two copies of your most recent utility bill to prove your current residency, a reference from your current bank, and a certified copy of photo identification such as a driver’s license or passport. Most applications can be handled online. 6. Deposit the required amount once the account has been opened (it usually takes 2-7 days after you have submitted the documents and forms to the respective bank). Depending on the jurisdiction and the bank, you may need to start with $1,000 (Antigua, Cyprus, Belize) or you may need to deposit $15,000 (Austria, Luxembourg, Switzerland, Hong Kong, Isle of Man). You can send funds by money order or initiate a transfer from your bank. If you are going to make a truly large deposit you can do so in person. Keep in mind that you will need to communicate regularly with your offshore bank, check your account, and deposit and withdraw funds. If your offshore bank is located in a place with a warmer climate, such as the Caribbean or Bahamas, you may visit your offshore bank to combine business with pleasure.

http://www.investmentinternational.com/news/latest/how-to-open-an-offshore-bank-account.html

Panamanian law gets you financing at 2% to 3% interest rates until 2008, or later ...

Banks granting residential mortgages for new residences below US$62,500 receive a negotiable tax credit equivalent to interest reduced in 2 to 4 points below the prevailing rate (see http://lawyerfuture.blogspot.com/2006/10/buying-your-real-estate-in-panama.html).

This has made financing the construction of houses an attractive business for banks, who after earning the tax credit can assign or transfer it to another company which has to pay a lot of taxes, but at a discount. The benefit stems from a little-known Panamanian law that gets you financing at 2% to 3% interest rates. The law expires this year 2008. http://mensual.prensa.com/mensual/contenido/2005/01/09/hoy/negocios/102717.html

For the buyer, this translates into having to repay a mortage loan at interest rates 3.2% to 4% less than what the government considers as the "Reference Rate", under Law 65 of October 29, 2003 , as long as the home is the main residence of the borrower and its purchase value does not exceed US$62,500.

What is more, if the home has a purchase value below US$16,000, the final interest rate to the borrower can be of 2%. http://www.martesfinanciero.com/history/2005/07/19/columnas/nacional_3.html

For example, the government Superintendencia sets the Reference Rate (TRM) at 8.25% http://www.pa-digital.com.pa/archive/11122003/finance01_slim.html A bank would get a 4% credit rate for financing the purchase ofa US$62,000 home, so the borrower would repay at a 4.25% rate. For a US$24,000 home, the bank gets a 5% credit, so the borower gets a 3.25% rate loan.

With the current TRM at 6.5% under Memo CFL 3-85 2-2008 you can use this formula to calculate the final loan rate:

TRM - Bank Tax Credit points = Final Loan Rate


This means that the law does NOT provide benefits if:
1) The home was purchased for more than US$62,500 (this may get you a 700 sq. foot apartment or studio in the banking area, or a 2 bedroom house in a working-class commuter town),
2) The borrower expects to buy the property under a corporation,
3) The borrower already has more than 1 home under his/her own name.
4) The borrower is a foreigner buying a home to apply for a Solvency Visa (which requires an US$80,000 home)

Developers are recommending to increase the cap for benefits to homes up to US$85,000, since the US$62,500 limit was set under the first preferential interest rate law 3 of 1985. This benefit is regularly renewed thanks to the construction lobby, although many developers and real estate agent are expected to push buyers into signing the dotted line with the story that interest rates will go up.

If anybody misses the 2008 deadline, it is a good thing to know that the 5-year laws have been renewed like clockwork under Laws 3/85, 11/90, 5/94, 28/95, 30/99, 50/99 and 65/2003.

Why do I have to give Panama banks so much information?

Panama banks are required by law to apply "Know-Your-Customer" (KYC) policies in order to have information in their files which would allow Panama authorities to know who the ultimate beneficiary owner (UBO) is, in case of a criminal investigation for violation of Panama laws. If your bank is not asking for this information, it is because they have no intention of sticking around for long and your money may actually be at risk of vanishing.

Regulated banks are demanding the following:

1) Personal interview with the accountholders (and/or Copy with Apostille of the passport of the accountholders)
2) ORIGINAL letters of reference from TWO (2) banks of EACH of the foreign director/ Council members and the foreign client,
3) Last statement of account from the two banks.

Banks reserve themselves the right to request further documents and even to reject the bank account application.

In addition, so that all Panama transfers are not subject to unjustified scrutiny by US banks, Panama banks must comply with Qualified Intermediary provisions enacted by the IRS.

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http://www.superbancos.gob.pa/aspec_prevencion/index_eng.asp

AGREEMENT 8 (2006)

The Superintendency of Banks is responsible for looking after the maintenance of the soundness and efficiency of the banking system as well download pdf

AGREEMENT 12 (2005)

Of December 14, 2005 - Prevention of the misuse of Banking and Trust Services download pdf

SPECIAL AGREEMENT 12 E (2005)

Of December 14, 2005 - Guide with examples of Suspicious Operations download pdf

AGREEMENT 5 (2003)

Of June 12, 2003 - Basic guidelines relating to the exercise of electronic banking services. download pdf

AGREEMENT 4 (2001)

Of September 5 of 2001 - DEFINITION OF CORPORATE GOVERNANCE. For the effects of this Agreement, Corporate Governance will be understood as the group of rules that govern with transparency the relationship and behavior between the Senior Management of the Bank, its Board of Directors, its shareholders, its depositors and any other stakeholder, which produces the strategic objectives of the enterprise, the means, resources and procedures to attain these objectives, as well as the system for the verification of the monitoring of responsibilities and controls corresponding to each level of the Bank�s structure. download pdf
RESOLUTION JD No. 032-2005
Of December 21, 2005 - Whereby the scope is set for the concept of Due Diligence contained in Article 3 of Agreement 12-2005 download pdf

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List of Approved KYC Rules and Rules Awaiting Approval

Revenue Procedure 2000-12 states that the IRS will not enter into a qualified intermediary (QI) withholding agreement that provides for the use of documentary evidence obtained under a country's know-your-customer rules if it has not received the know-your-customer practices and procedures for opening accounts and responses to 18 specific questions listed in the revenue procedure.

This document lists those countries that have submitted know-your-customer rules. Two lists are provided -- a list of countries whose know-your-customer rules have been approved by the IRS and a list of countries whose know-your-customer rules have been submitted but not yet approved.

The qualified intermediary agreement contains an attachment that lists the specific types of know-your-customer documentary evidence for each country that is sufficient for purposes of the qualified intermediary agreement. The IRS is working together with the organizations that have submitted acceptable know-your-customer rules to develop standardized attachments. The attachments can be seen here as soon as they are available. For more information, see Rev. Proc. 2000-12 and Announcement 2000-48 .

If a country is on the approved list, entities and branches located in that country may submit their QI applications even if the IRS has not yet agreed to a specific attachment for that particular country. Once a specific attachment has been developed for a particular country, the IRS will associate the attachment with the qualified intermediary agreement it sends for signature. A qualified intermediary may suggest amendments to the attachment, but departures from the standardized attachment may delay processing of an application.

• Panama

ATTACHMENT FOR PANAMA
1. QI is subject to the following laws and regulations of Panama governing the requirements of QI to obtain documentation confirming the identity of QI�s account holders.
(i) Law No. 42 of October 2, 2000.
(ii) Decree Law No. 9 of 1998.
(iii) Agreement No. 9-2000 of October 23, 2000.
(iv) Decree Law No. 1 of July 8, 1999.
(v) Interbank Agreement No. 34 of the Panama Banking Association.
(vi) Panama Banking Association�s Guide for the Prevention of the Wrongful Use of Bank Services.

2. QI represents that the laws identified above are enforced by the following enforcement bodies and QI shall provide the IRS with an English translation of any reports or other documentation issued by these enforcement bodies that are relevant to QI�s functions as a qualified intermediary.
Item 1(i): Superintendency of Banks, National Securities Commission, and Financial Analysis Unit.
Item 1(ii), (iii): Superintendency of Banks.
Item 1(iv): National Securities Commission.
Item 1(v), (vi): Board of Directors, Panama Banking Association.
3. QI represents that the following penalties apply to failure to obtain, maintain, and evaluate documentation obtained under the laws and regulations identified in item 1 above.
Fines from US$5,000 to US$1,000,000, private admonition, public admonition, removal of officers, annulment of banking license, intervention in bank�s administration with compulsory reorganization or liquidation, expulsion from Panama Banking Association.
4. QI shall use the following specific documentary evidence (and also any specific documentation added by an amendment to this item 4 as agreed to by the IRS) to comply with section 5 of this Agreement, provided that the following specific documentary evidence satisfies the requirements of the laws and regulations identified in item 1 above. In the case of a foreign person, QI may, instead, use a Form W-8 in accordance with section 5 of this Agreement. Either QI, or a banking or securities association in Panama, may request an amendment of this item 4.
(i) For natural persons:
(a) Passport,
(b) National identity card,
(c) Driving license that bears a photograph.
(ii) For legal persons:
Copy of certificate of incorporation, memorandum of association and by laws, trust deed or certified copy of extracts from the trust deed.
5. QI shall follow the procedures set forth below (and also any procedures added by an amendment to this item 5 as agreed to by the IRS) to confirm the identity of account holders that do not open accounts in person or who provide new documentation for existing accounts other than in person. In the case of a foreign person, QI may, instead, use a Form W-8 in accordance with section 5 of this Agreement. Either QI, or a banking or securities association in Panama, may request an amendment to this item
(i) QI shall not open an account by any means other than by establishing in person the identity of a customer through the account holder�s own identity documents, except as permitted in (ii), (iii) and (iv) below.
(ii) QI may obtain by mail or otherwise a copy that is an exact reproduction of the specific documentary evidence listed in item 4 above from another person that is subject to know-your-customer rules that have been approved by the IRS for purposes of qualified intermediary agreements, provided that the laws and regulations listed in item 1 permit QI to rely on the other person to identify the account holder.
(iii) QI may obtain a photocopy of the specific documentary evidence listed in item 4 by mail or otherwise remotely from the account holder or a person acting on behalf of the account holder, provided that the photocopy has been certified as a true and correct copy by a person whose authority to make such certification appears on the photocopy, and provided that the laws and regulations listed in item 1 permit QI to rely on the certified photocopy to identify the account holder.
(iv) (iv) (a) QI may obtain by mail or otherwise a copy that is an exact reproduction of the specific documentary evidence listed in Item 4 from an affiliate of QI or a correspondent bank of QI, provided that the affiliate or correspondent bank has established in person the identity of the account holder and the laws and regulations listed in Item 1 permit QI to rely on documentation provided by that affiliate or correspondent bank to identify the account holder.
(b) For accounts opened prior to January 1, 2001, if QI was not required under its know-your-customer rules to maintain originals or copies of documentation, QI may rely on its account information if it has complied with all other aspects of its know-your-customer rules regarding establishment of an account holder�s identity, it has a record that the documentation required under the know-your-customer rules was actually examined by an employee of QI, or an employee of an affiliate of QI or a correspondent bank of QI, in accordance with the know-your-customer rules, and it has no information in its possession that would require QI to treat the documentation as invalid under the rules of section 5.10(B) of this Agreement.

Panama mortgage loans for foreigners

One of the many questions we receive is what are the requirements for a mortgage loan. Each bank has their own list of requirements and not all cater to expats arriving to Panama. All banks ask that a bank account be opened with them as additional collateral, which in turns means that a new customer must provide all due diligence and know your customer documents.

We received this list from Credicorp Bank which responded to our survey:

A. Source of Funds Identification

This process is necessary to identify the source of funds and also to measure the large of the account. Basic documents are as follow:

1.Personal Accounts

• Personal accounting balances

• Personal Income Tax Declaration

• Last two month personal bank account statement.

2.Corporation Accounts.

• Copy of the Registration of the Corporation

• Balance Statement of the corporation. Must be stamped/duly signed by an Authorized Accountant.

• Last two month personal bank account statement.

B. References.

1.Personal Accounts

• Personal Bank References

• Personal Credit Office References (from a credit bureau office).

2.Corporation Accounts.

• Corporation Bank References.

• Commercial References of a Service Provider or important client.

• Corporation Credit Office References (from a credit bureau office).

C.Copies and Other Documents.

1.Personal Accounts

• Passport copy (copied in the bank premises.)

• Driver License (copied in the bank premises)

• Copy of a utility bill.

• Fill out of internal account opening forms.

2.Corporation Accounts.

• Copy of a utility bill.

• Copy of product brochures, annual corporation book or any other important document related to the operations of the corporation.

• Fill out of internal account opening forms.

D. Mortgage Loans.

1.Basic Documentation

• Draft of Sale Contract.

• Fill out internal forms.

• Most recently-made appraisal (if required)

• Copy of the Title (if required)

• Opening of Bank Account (information above).

2.Basic Parameters (subject to negotiate)

• Competitive Interest Rates

• Term up to 30 yrs for personal and 15 yrs for commercial

• Loan amount up to 70.0% of property value.

• Life insurance of debtor for total amount of loan endorsed to the bank.

• Fire Insurance for 80.0% of construction value per appraisal submitted endorsed to the bank.

• 1.0% of FECI tax (if applicable)

• Up to 1.0% of commission based on loan amount.

Their website has a handy online mortage calculator.
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Opening your bank account in Panama

BANK ACCOUNT REQUIREMENTS IN PANAMA

Foreigners are subject to "Know-Your-Customer" (KYC) requirements when opening an account with a bank in Panama. Subject to changes according to internal procedures of each bank, applicants must appear in the person at the bank for a personal interview and provide :

1) 2 Letters of Reference from 2 other banking institutions, authenticated with Apostille or by Panama Consul, addressed to the bank in Panama,

2) Copy of the passport and another picture identification (providing the original documents for verification)

3) Tax return or other document which will help the bank identify the income range of the applicant and compare it with the movement of account.

The Panama Superintendent of Banks has a website

http://www.superbancos.gob.pa/ where all institutions licensed to provide banking services are listed. Institutions which do not appear in this listing act in violation of local laws and depositors risk losing their deposits.

In addition, Panama banks owned by investors holding publicly-traded shares, disclose their financial statements and relevant events to the Panama Stock Exchange http://www.panabolsa.com/

, which helps to gauge their financial solvency.