Banking

Banking in Panama

Panama is one of Latin America's major banking centers with a modern, stable, and regulated system. Using the US dollar as currency makes banking straightforward for Americans and simplifies money management.

Opening a Bank Account

Requirements (Tourist):

• Valid passport
• Reference letter from home bank
• Proof of address (utility bill from home country)
• Minimum deposit varies by bank ($500-5,000)

Requirements (Resident):

• Valid passport
• Residency card (cédula)
• Proof of local address
• Easier process and more options

Process:

• Visit branch in person (required for first account)
• Bring all documents
• May take 1-2 weeks to activate
• Online banking typically included

Major Banks

Large International Banks:

• Banco General - Largest local bank, excellent service
• Banistmo (Bancolombia group) - Very popular with expats
• Global Bank - Good online banking
• BAC Panama - Strong reputation

International Presence:

• Citibank - Limited branches but US connection
• HSBC - Closed retail banking but private banking remains
• Scotiabank - Canadian bank with local presence

Banking Services

Standard accounts include:

• Checking and savings accounts in USD
• Debit cards (Visa/Mastercard)
• Online banking and mobile apps
• ATM network across country
• Wire transfers (domestic and international)

Fees:

• Monthly maintenance: $5-20 typically (waived with minimum balance)
• ATM fees: $1-3 for other banks
• Wire transfers: $25-50 international
• Debit card: Usually free

Using US Dollars

Huge advantage of Panama banking:

• No currency conversion needed for Americans
• No exchange rate risk
• Easy to compare costs to US
• Straightforward financial planning
• US bills accepted everywhere (though small bills better)

International Transfers

Sending money to Panama:

• Wire transfer: From US bank typically $25-50, arrives 1-3 days
• Wise (formerly TransferWise): Lower fees, good rates
• PayPal/Venmo: Limited use in Panama
• Cash: Can bring up to $10,000 without declaration

Sending money from Panama:

• International wires: $25-50 typically
• Most banks have online wire transfer
• Wise works well for transfers out

Credit Cards

Using US credit cards:

• Widely accepted in Panama City and expat areas
• Less common in rural areas (bring cash)
• No foreign transaction fee cards recommended

Getting Panama credit card:

• Easier with residency
• Requires income verification
• Credit history starts from zero in Panama

ATMs

• Abundant in cities and towns
• Most accept foreign cards (Visa/Mastercard/Plus)
• Withdrawal limits: $300-500 typically per transaction
• Fees: $2-5 per withdrawal for foreign cards
• Very safe to use in populated areas

Online Banking

Most major banks offer:

• Good mobile apps
• Bill payment online
• Transfers between accounts
• Check deposit via phone camera
• Generally modern and user-friendly

Investment Options

Panama has developed investment market:

• Local brokerage accounts available
• Panama stock exchange (though limited)
• Most expats keep investments in home country
• Consult tax advisor on reporting requirements

Banking Privacy

Panama has banking secrecy laws BUT:

• Complies with international reporting (FATCA, CRS)
• US citizens must report foreign accounts over $10K
• Legitimate privacy protections for legal funds
• Not a tax haven in practical terms anymore