Top Reasons to Bank Offshore in Panama

Anyone who has financial success can understand the difficulties associated with managing this nest egg. Having a large income requires larger tax payments which in turn creates more attention from the IRS. If you keep all of your assets in your local jurisdiction your transactions come under the scrutiny of the post 9 /11 anti money laundering system aimed at keeping criminals from integrating illegal revenues into the legitimate banking system.

There are a few places left in the world that cater to offshore banking clients by providing solid privacy and protection laws. Offshore banking is a bank located outside the country of residence of the depositor.

Having an offshore bank account provides the depositor with financial, legal and tax advantages when the offshore jurisdiction is selected properly. The Bahamas, a former tax haven, now has strict banking laws that allow bank officials to report on their clients to authorities who ask.

On the flip side of the coin the Republic of Panama has total banking secrecy laws in place in spite of pressures from the IMF and US government asking them to report any suspicious activity to local authorities. Banking secrecy laws in Panama protect clients through the use of fines, employment termination and even imprisonment if an official is caught disclosing client information.

Panama also offers clients uninhibited asset growth by providing services which require little or no capital gains or income tax. Putting your money in a Panamanian bank is a great way to grow a nest egg tax free.

Bank accounts in Panama come with all of the standard services one can expect to find from institutions in their own country such as online banking, ATM cards and checks. Setting up an account in a bank in Panama can be done for as little as $695 USD with the applicant not required to visit Panama.

Another offshore banking haven is the Cayman Islands, which had a reputation for near perfection banking secrecy. Bank officials who report client information to the CIA, Treasury department and even the International Monetary Fund are supposed to face imprisonment.

In recent financial news a bank owner from the Cayman Islands named John Masterson allegedly reported over 1 year worth of his bank's records to the United States government that got a lot of US taxpayers into hot water. If the banking secrecy laws of the Cayman Islands were strictly enforced in this case, Mr. Masterson would be serving a long sentence in jail. Mr. Masterson currently lives free so anyone considering offshore banking beware, no offshore setup is perfect.

Article Source: http://www.rightbiz.com

Find out how to setup a panama bank accounts or offshore asset protection at the OffshoreLegal.org website.

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