Long recognized as a commercial hub of the Americas since it was a converging point of world steam-ship lines, Panama has similarly developed into a banking and foreign exchange center.
The Panama Banking superintendence supervises the banking activities closely to maintain a highly rated, reputable financial center.
More than 30 countries have been represented with commercial banks in Panama due to the 1970 banking law guaranteeing free movement of funds and lower taxes.
More than 6,000 Panamanian are employed by the banks, with multiple foreign banks operating in Panama. Of all the banks officially registered, approximately 70% provide full domestic and foreign services, about 30% are licensed strictly to conduct international operations or are representative offices.
It is essential to point out that offshore banking operations are exempt from Panamanian income tax. In a world moving toward greater globalization, Panama’s flexibility in dealing and experiencing a multitude of financial factors, including banking, low costs, and trade, establish it as a prime location in which to conduct local as well as global businesses..