If you are wondering why finding a great bank in Panama is becoming more difficult lately, there are a number of reasons why, as mentioned in a recent article in La Prensa, the leading newspaper of Panama.
Increased operating costs because of risk controls imposed by the US have led to correspondent banks avoiding working with small banks.
Maintaining small structures at the same time as paying high costs in order to meet the standards required internationally, primarily in the United States, is no longer viable for banks who want to remain profitable.
Prensa.com reports that "...The secretary general of the Latin American Federation of Banks (Felaban), Giorgio Trettenero, told La Prensa that the phenomenon extends to Latin America and the world. "It's a complex issue. American compliance standards are becoming so costly, that for a large bank it is no longer worth lending to a medium or small bank, because the cost of administration is very great'."
"... The new international reality of the banking sector, marked by risk aversion on the part of large correspondent banks, could lead to a process of mergers and acquisitions in the region and in Panama, said Gustavo Villa, Secretary General of the Superintendency of Banks in Panama." We all heard about Multibank, choosing to charge each individual expat in Panama, a commission to help pay the cost of FATCA. That commission is $250 per year per person. Very few people have been able to get away with not paying it. I know some very irate people who stormed into Multibank when they heard about it, and after huge confrontations, left, opened up another bank account, and quickly returned to close down their Multibank accounts. Lawyers and others are paid commissions to bring their people to Multibank. Why would anyone take clients or friends to a bank that was charging $250 a year per person as a commission? No other bank is doing it in Panama. If you are new to banking in Panama, e-mail me for some of the better solutions..........
Increased operating costs because of risk controls imposed by the US have led to correspondent banks avoiding working with small banks.
Maintaining small structures at the same time as paying high costs in order to meet the standards required internationally, primarily in the United States, is no longer viable for banks who want to remain profitable.
Prensa.com reports that "...The secretary general of the Latin American Federation of Banks (Felaban), Giorgio Trettenero, told La Prensa that the phenomenon extends to Latin America and the world. "It's a complex issue. American compliance standards are becoming so costly, that for a large bank it is no longer worth lending to a medium or small bank, because the cost of administration is very great'."
"... The new international reality of the banking sector, marked by risk aversion on the part of large correspondent banks, could lead to a process of mergers and acquisitions in the region and in Panama, said Gustavo Villa, Secretary General of the Superintendency of Banks in Panama." We all heard about Multibank, choosing to charge each individual expat in Panama, a commission to help pay the cost of FATCA. That commission is $250 per year per person. Very few people have been able to get away with not paying it. I know some very irate people who stormed into Multibank when they heard about it, and after huge confrontations, left, opened up another bank account, and quickly returned to close down their Multibank accounts. Lawyers and others are paid commissions to bring their people to Multibank. Why would anyone take clients or friends to a bank that was charging $250 a year per person as a commission? No other bank is doing it in Panama. If you are new to banking in Panama, e-mail me for some of the better solutions..........
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