PANAMA BANK LICENSES

Panama Bank Licenses

Panama offers the possibility to obtain an offshore Bank License with not so many complicated steps and investment compared to other jurisdictions.

In general terms it is possible to divide offshore bank licenses into two basic types of licenses.

General Bank License is understood in a majority of jurisdictions as a license for the providing of bank services at the place of registration and internationally direct to the general public. The bank acts as any other bank entity, it can accept deposits from the public and perform common bank services with residents or non-residents. In an overwhelming majority of countries, however, the activity is limited to providing services to non-residents, i.e. offshore banking services only. This type of offshore bank is established in view of providing commercial bank services in an offshore regime.

International Bank license is a license which limits territorial activities of the bank or the possibility of providing services in foreign currencies or even just to certain persons. In a majority of cases, the bank cannot accept deposits from the public and it can provide its services only to those entities which are provided for in the bank license. This bank is used as a so called corporate bank for active Cash Flow management.

Incorporating Banks in Panama

The information and backgrounds required in Panama from the bank license applicant are as follows:

• Bank name and its legal form
• Applicant status (whether the matter concerns establishment of a branch office of a foreign bank or a new company)
• Names and curricula vitae of the bank directors
• Certificates of police clearance of applicants and directors
• Bank and business references
• Submission of information about economic management of the firms of the applicant(s)
• Identification of the bank shareholders
• Identification of the type of issued shares of the bank (registered shares, priority shares, shares without voting rights, etc.)
• Denomination of the issued shares of the bank and type of currency used
• Capital structure of the bank and capital security
• Capital reserves of the bank
• Information stating from what resources the bank will be invested
• Document of certifying that the registered capital has been paid up (if registered in the host country)
• Document certifying that all taxes, stamp duties and royalties have been settled
• Identification of the registered office in the host country
• Identification data of the registered agent or representative (if required)
• Identification data of the auditor and lawyer with a registered office in the host country
• Type of intended services which are to be provided
• Territorial operational range of the bank
• How the company will protect itself from fraudulent or criminal conduct
• Business plan of the bank (the authorities generally require a balance sheet from 3 to 10 years)
• Benefits for the host country resulting from the bank operation
• Signed and presented applications for the issue of the bank license