How to open a bank account in Panama as a foreigner

Panama has a large banking center and uses the US dollar. That is why many foreign companies and investors want an account here. It can be done, but it is neither fast nor automatic. Before accepting you, a Panamanian bank has to understand who you are, where your money comes from and what you will use the account for. This guide explains what to expect and how to prepare.

What the law requires from banks

Two rules shape the process:

• Law 23 of 2015, Panama’s anti-money laundering law. It requires banks to identify and verify each client and beneficial owner, understand the purpose of the relationship and build a financial and transaction profile.
• Rule 10-2015 of the Banking Superintendency (Acuerdo 10-2015), which lists the information banks must collect from each client.

This is called due diligence, or KYC. It is not a formality. Article 36 of Law 23 says that if a client does not provide this information, the bank must not open the account. It may also file a suspicious activity report.

The law follows a risk-based approach. The more risk a bank sees in a client, the more questions it asks and the more documents it requests.

What banks ask from an individual

Article 14 of Rule 10-2015, as amended, lists what the bank must obtain from an individual before opening the account:

• Identification. For foreigners, the passport. Also nationality, residence, occupation and employment status.
• Tax ID. The taxpayer number for each country where you pay taxes. Foreigners also sign a sworn statement that their income complies with their tax obligations.
• Source of funds. Supported in writing. Saying it is not enough.
• Financial profile. At least one document showing your income, such as an employment letter, a tax return or a pay slip.
• Transaction profile. How much you plan to deposit, how often and why.

Because of international tax reporting rules (CRS and FATCA), the bank will also ask you to sign a tax residency self-certification. According to the Panama Tax Authority’s guidance, it must be obtained when the account is opened, and the bank must check it against the rest of your file. US persons should expect to be asked about their US tax status.

Each bank adds its own requirements on top. The current text of Rule 10-2015 does not require bank references, but many banks still ask for them under their own policies. Others ask for proof of address or tax returns. The exact list depends on the bank.

Personal or corporate account

Many investors open the account in the name of a Panamanian corporation (sociedad anónima). In that case, the bank reviews both the company and the people behind it. Article 15 of Rule 10-2015 requires, among other things:

• The articles of incorporation and a Public Registry certificate showing the company exists and is in good standing.
• ID for the president or legal representative, the secretary, every signatory and every attorney-in-fact.
• Identification of the beneficial owner. For corporations, the bank must identify shareholders holding 10% or more of the shares.
• Source of funds and financial profile of the company: financial statements, tax returns or other proof of income.
• The account’s transaction profile.

If the bank cannot identify the beneficial owner and doubts remain, the rule tells it not to start the relationship.

In practice, a corporate account requires more documents and more time. It makes sense when the company will operate, invoice or hold assets. The company itself must be up to date first: annual franchise tax paid, a registered agent in place and beneficial owners filed under Law 129 of 2020.

Why applications get rejected

Banks rarely explain in detail why they turn a client down. But the reasons tend to repeat:

The source of funds is unclear

This is the most common one. “Savings” or “sale of a property” is not enough. The bank wants the paper trail: the deed of sale, the bank statements, the tax return. If the money moved through several accounts or companies, the bank will want to see each step.

The beneficial owner cannot be identified

Layered structures with several companies, or shareholders who prefer not to be named, stall an application. The law requires the bank to know who ultimately controls the company.

The profile does not fit the account

If you declare a modest income but expect to move large amounts, the bank will notice. The same happens when the purpose of the account is vague. Your expected activity has to match your income and your business.

The client is higher risk

The law requires enhanced due diligence for politically exposed persons (PEPs), their close relatives and associates, and for clients linked to countries the FATF considers high risk. Approval then goes up to the bank’s senior management. Some banks simply do not take certain profiles.

The file is incomplete or inconsistent

A name spelled differently in two documents, an outdated reference or a missing translation all trigger questions. Every round of questions adds weeks.

A rejection is not always final. Another bank may have a different risk policy. But resubmitting the same weak file rarely changes the outcome.

How long it takes

There is no legal deadline for the bank to answer. Timing depends on:

• The bank and its compliance committee.
• The type of account. Corporate accounts involve more people and more documents.
• How complete your file is.
• Whether foreign documents need an apostille and an official Spanish translation.

Market firms report very different ranges. One relocation firm, for example, mentions anywhere from an hour to a few days for a personal account and 4 to 8 weeks for a corporate one. Treat that as a reference, not a promise.

The bank will also update your information over time. Rule 10-2015 sets reviews every 12, 24 or 48 months depending on the client’s risk. Opening the account is the start of the relationship, not the end of the paperwork.

How to prepare

1. Decide what the account is for. Personal or corporate, what amounts, what kind of transactions. Everything else follows from that answer.
2. Gather proof of the source of funds. It takes the longest and carries the most weight.
3. Request your references early, if the bank wants them. A reference from your home bank can take days.
4. Check that your documents match. Same names, addresses and dates everywhere.
5. Apostille and translate foreign documents. Panama generally requires an official translation into Spanish by a certified public translator.
6. Ask whether you need to come in person. Many banks require an interview or an in-person signature.

How we can help

Tramita Todo has handled paperwork in Panama since 2008, from our office in Obarrio, Panama City. We work with clients abroad by WhatsApp and email. For bank account openings:

• We review your case and tell you which documents you need.
• We help you put together a complete, consistent file, including proof of the source of funds.
• If the account is corporate, we check that your company is in good standing. If you do not have one yet, we advise you on forming it with an allied law firm.
• We coordinate with the bank and follow up on its questions.

The final decision always belongs to the bank. No advisor can guarantee approval. What we can do is make sure your application arrives complete and well presented.

See our service to open a bank account in Panama, our Panama corporation service, or the full companies and bank accounts section. You can also message us on WhatsApp for a quote.