October 20, 2006, Laurie Cooper
Much like the Panama Canal and the Colon Free Zone (the largest free trading zone in the Western hemisphere), the financial service sector has had a tremendous impact on the country’s economy and direction. With more than 70 banks from over 32 countries around the world, Panama has established itself as the largest international financial centre in all of Latin and South American and the second largest banking centre in the world – next to only Switzerland.
Foreign and domestic investments have accelerated the growth of this sector in the last few years, helping fuel and shape this international financial centre to what it is today. Panama’s banking sector total assets amounted to an incredible $45 billion in December of 2005; this is approximately 300% of the country’s GDP and a 12% increase from the year prior.
Panama’s banks offer some of the best secrecy laws available in the world and have recently taken measures to combat capital laundering and terrorist financial activities – all the meanwhile obtaining international standards and global recognition. Amongst the world’s toughest secrecy laws, banks are prohibited from revealing customer account information to non-bank employees and may only disclose such personal information to select authorities during a criminal court trial. These laws extend to internal bank employees, consultants, contractors and auditors. Breach of such laws may bring about criminal charges along with a fine of up to US$100,000.
Panama’s banks understand the importance of setting and adhering to safety and security standards as global terrorism and Internet identity theft pave the road to our new millennium. By providing international cooperation and transparency programs, the banks are able to form intelligent systems that will combat fraud and criminal activities and ensure our continued financial security and peace of mind.
