There are specific differences in the 4 types of available accounts. Find the one or two that suits you best. Our recommendation is to start with an MMSA and MasterCard and combine it with either a CD or a Factor Note.
CD Versus FN
FNVSA-Friendly Nations Visa Savings Account
The Superintendency of Banks in Panama takes special care of depositors in the event of a banking issue. Bank owners and investors in bank stocks are not protected in the same way as depositors, and would get paid out last in the event of a liquidation or bank failure. Insurances were created in North America due to so many bank failures there. The smart people soon learned to move their money to Panama or Switzerland for safe keeping. That was the beginning of Offshore Banking. Depositors also learned of the higher interest rates offshore. That was also the beginning of Insurances such as FDIC and CDIC to try and stem the flow of money out of North America to foreign shores. In the US & Canada the Federal Deposit Insurance Corporation (FDIC) and the Canadian Insurance Corporation (CDIC) insured bank deposits in the hopes that it would stop people from moving their money to safety in Panama or Switzerland. This would only work with small banks that fail. A large bank failure would wipe out the FDIC or CDIC insurances. In the case of a small bank failure, the FDIC pays depositors up to $250,000. In Canada it’s $100,000.
On June 28, 2012 a Credit Union known as COACECSS was intervened by the Martinelli Government (2009 - 2014) with claims of mismanagement which were never justified or proven. The COACECSS situation was considered an unwarranted political action by those close to the situation. A liquidation commission was formed and approximately every 6 months, the depositors are being repaid approximately 10%. 2018 should prove to be the final year of payments to depositors.
COACECSS was a single solitary, stand alone Credit Union with various branches in Panama. The Federation is a group of close to 100 Credit Unions that had it's beginnings in 1961. It has been said that if COACECSS could have been one of the 100 or more Federation Credit Unions, that it would never have been liquidated. The financial structure at the Federation is far more secure and they are much more conservative in areas of lending.
"FED" stands for Federation and "PA" stands for Panama. November 18th 1961, with the support of the Catholic Church, thirteen (13) Panamanian credit unions, founded the Federation of Credit Unions of Panama, RL (FEDPA)
The Federation of Credit Unions of Panama, RL (FEDPA), is a cooperative association where FEDPA is the majority shareholder of the Group, which since 1961 has developed the important and effective work of union representation, integration and promotion of Panamanian financial cooperative systems, known as "Financial System FEDPA" which stands out as a body of financial and technical assistance, to be supervised, regulated and supervised by the State through the Panamanian Autonomous Cooperative Institute (IPACOOP).
FEDPA currently has approximately one hundred (100) member cooperatives which in turn have more than one hundred and thirty thousand members. You can get more details here.
On October of 2016 the Government of Panama approved a new law 47, under which the country accepted the challenge of accomplishing the FATCA requirements. On May 2017 the Panamanian Internal Revenue Service (Dirección General de Ingresos) sent a memorandum to every financial institution with instructions to register with the IRS and submit reports for the years 2014, 2015 and 2016, only for USA citizens and residents with deposits over US$ 50k. It is obvious that this obligation arose from the pressure coming from the US Government through the Panama Papers and OFAC list.
Like in the United States, Canada, and many other countries, there is a certain amount of documentation required to open a new account. email us at email@example.com We can do it all online for you if you have skills.
In Panama, opening a new account at a bank can take weeks to get approval (or to be turned down. The Federation Credit Union can get your account established in a matter of hours once the documentation is received.
Credit Unions have been legal in Panama since 1948!
Absolutely! At the Federation, you can borrow against your term deposit up to 90% at a 2% spread, as your term deposit is pure equity.