Why would you want one? Other than developing local credibility, you might want a mortgage. You may find it easier to pay your household and other local bills through a Panamanian account. Not every service accepts credit cards, and who likes to keep large amounts of cash in hand? Certainly issuing foreign checks is frowned on as they incur a fee for the bearer and take up to 2 weeks to cash. From that point of view alone, opening a local bank account makes sense.
Who can get a Panama Bank A ccount?
Many sources say only those with established permanent residency in Panama. This is under debate. For example, sometimes you can get a lawyer to open one for you. One young teacher traveling through here on just a student visa went to a local co-op bank [COOPEDUC] and opened a bank account with just her passport. She couldnīt understand why everyone thought it was so hard. A lawyer told me just this week he had opened an account for an American client just moving here. He clearly hasnīt got permanent residency yet. It seems a growing number of banks do not require you to be a permanent resident to open an account. To be sure, call the bank you are interested in and ask their requirements.
Types of Accounts
Of course, there are many different types of bank accounts, but the standards are checking and savings. Savings accounts require less money and documentation, and are usually the easiest to open. You can get an ATM card, or simply use the bankīs passbook. Checking accounts are slightly more complicated, and more expensive to keep. The minimum deposit and balance requirements are also higher.
Offshore Accounts
For brevity, weīre not going to expound on these handy little things today. We will say, however, if you have a LARGE sum of money to bring into Panama...this might be how you want to do it. There are several qualified people to guide you through these, and
ThinkPanama.com has a great article about them.
Best Advice - Be Patient
Panama is known for its relaxed way of life. It is also known for erring on the side of banal bureaucracy. The only solutions are:
a] get someone to do menial tasks such as opening an account for you
b] be patient. Assuming you are not ready to pay a lawyer or sign the power of attorney required to have someone else do it, practice your deep breathing.
Now that you know, you won`t be so shocked or surprised, and knowing what to expect is half the battle, right? The other half is preparation. Below is a list of documents you will need to take with you.
Documents You Need
Valid passport.
1-2 bank references.
1-2 personal references - someone living here, who knows you either personally or in business. Try to choose someone of whom you are certain has a good reputation and financial background. Sometimes the bank only asks for a name and phone number, but others may want a signed letter. Either way it is usually a formality.
3 recent bank statements - they like to see the down and dirty of your other accounts for themselves.
Quirks and Small Print
ATM charges ? some banks charge for taking out on ATMīs that do not belong to them, others do not.
Ask. Minimums ? a common minimal balance for a savings account is $50. It goes up to $300 for a checking account and $1000 for corporate. If your account goes below the minimum, there is usually fee of around $10. Annual Card Fees - for most savings accounts, you can work just with your bank passbook; but who wants to stand in line every time you want to take out money? Better to pay the $15-20 yearly fee for having a withdrawal card. Most of these work as a debit card, too, known as CLAVE [ pronounced
klav-ay ] in Panama. Credit Cards - It used to be very difficult to get a credit card in Panama. Whether it is getting easier or not, we can`t say. Either way, interest rates are normally between 14 and 25%, and annual fees are $40-60. It might just be better to keep any current cards you may have. Pre-paid cards do exist in Panama, should that be a path you prefer. If you do manage to get a local credit card, your credit will likely be low at first. As you develop your local credit history, this will be raised. Interest Rates - percentages for savings accounts are notoriously low at well-known banks. General Banking Tips and Tricks
Keep your Foreign Accounts. Don`t close them! They are simply too important for references, transfers and the like. Even if you only keep them at the minimum balance, it is better to have them and your credit/financial history than not.
Check the Details. Make sure all documents have the same name and the same spelling of names and important details. This will save them being rejected by the bank officer who has had a bad day. They can be sticklers about this.
Take Copies. It is always best to bring a photocopy of important documents, just in case. This is especially true for things like your passport`s personal info pages and any Panamanian immigration identification. Whether or not these copies need to be notarized, or in fact need them at all depends on the bank. You might take your original document to them and they happily whiz off a photocopy and Bobīs your niece... or, they might send you away and tell you to get notarized copies. If at that point you can pull out your handy-dandy self-made photocopies, you might be in luck. Best advice is to call ahead, asking their requirements. Donīt for a minute SUGGEST they should be notarized, but do ask if you should bring photocopies.
Call ahead. Take the time to get through the hoops of voice mail, and wait to speak to an English bank rep who can answer your questions. Have a list of questions, so you donīt forget.
Be Patient. You might get cut off during your battle with voice mail. You might get to the bank and find out you were told the wrong information when you called to ask. Those of us who have lived here for a while have innumerable tales of such frustration. It is one of the only downsides to living in what is a perfectly lovely country, and an easily resolved problem if you are able to expect the best and deal with the rest.
Keep your Cool. Customer service does not work quite the same in Panama as in other countries. In North America if you are unhappy you can start to get reasonably agitated [whether for show or for real] and instantly find your every wish is being granted. The customer is always right, yes. In Panama, it is the opposite. If you are rude or aggressive, it will not be well received. In fact you might well find you get exactly nothing of what you want. Keep calm.
A Smile goes a Long Way. That is not trite advice. Culturally speaking, many locals get nervous when faced with foreigners. Whether this is fear of having to speak English, or acquired prejudice; smiling and being super-friendly will help you get what you want. Start out being super-friendly and you will have a new buddy who wants to help you. You will also have a point of contact for a later date.
Donīt get Mad, but Be Firm. Remember the `keep cool` advice. If you are finding it frustrating to get the correct info, or your papers that seem in perfect order are being rejected...don`t get angry, get nice. Play dumb, innocent, and sweetly ask if there is anything you can do to get the problem fixed. Act worried and disappointed and [with that winning smile in place] ask if there is anyone you can talk to that might be able to help. Sometimes, done in just the right way, a seemingly impossible situation will be suddenly resolved because a] you stood your ground and did not just walk away angrily and b] you were polite and kind.
Know when to Walk Away. If, after all the above, you truly are missing some essential piece of information or the person you need is on vacation, resign yourself to going back another day. Remember, these situations are few and far between and a delay is a small price to pay for living in such a great country.
Know the Rush Hours. Avoid the 15th and 30th of the month, and lunch time on any day. These are the busiest times in a bank. Generally, early morning is best.
Now, with your ID and other documents in hand - and some insider tips on how to work the system - it will be a breeze for you to open a bank account. You might even enjoy the experience. And even if you do end up sitting and waiting a while, many banks offer free coffee! At the very least you can walk away with your new account information and a rather nice piece of hard candy. That is the low-down on bank accounts. You bring the money!
REQUIREMENTS TO OPEN ACCOUNTS HSBC, SCOTIA BANK AND BANESCO
HSBC - Call: 263-5877 CHECKING
$500 to open
Passport
Second ID
2 References from other Banks
3 Months of statements
SAVINGS
$50 to open
Passport
Second ID
2 References from other Banks
3 Months of statements
CORPORATE
$1000 to open
OWNERīS ID PASSPORT & OTHER ID
TWO IDīS OF PARTICIPANTS
ONE BANK REFERENCE APPROVED BY THE PANAMA CONSULATE
Pactos Sociales local incorporation documents copy
Minutes of the Board of Directors
Board of Directors Authorization
BANESCO - Call 282-2000 CHECKING and SAVINGS
$500
Passport
Any Invoice service copy
2 bank references
1 credit reference
SCOTIA BANK - Call: 208-7700 GENERAL REQUIREMENTS
Resident Status
$1000
Job Letter verifying where you are working and salary
1 bank reference letter
For All your Panama Banking, Panama Investing, or Panama Real Estate needs contact
Douglas M. Choy at
ThinkPanama.com. They will be happy to provide any guidance and information you may need.
