Why Bank Panama has Become the Switzerland of South America
Why Bank Panama has Become the Switzerland of South America
Panama has become the favorite destination for offshore banking and investment today by the leading merchants around the world. Now Panama has got a new name under the belt, people call it Switzerland of South America. Around one hundred and fifty financial organizations represent bank panama system today. Many of these banks are operating their financial programs in the skyscrapers of forty stories. Panama is regularly hyped as a country where banks follow the best banking secrecy laws of the world. If their laws are researched and discussed in depth, this statement will definitely come out as a truth.
While looking in depth, first thing that should come under consideration is the provision of tax treaties association with other countries. Even the noob offshore business holders are concerned about the fact that bank Panama doesn't have any tax treaty with other country. These tax treaties are considered as invasive issues for banking privacy of a business merchant. Some treaties are associated with collection of some amount as a percentage of taxes from interest earnings. These amounts are paid directly to the customers and the money is sent to the home country of the client. Many banking organizations use these treaties for assessing the facts about a bank account in case of suspicion on a merchant living inside their country with offshore banking and investments.
In all these ways, bank privacy is invaded. That's why bank Panama doesn't allow any third party organization to access the sensitive statements of the respected clients. Mutual legal assistance treaty is another important bank treaty. MLAT allows the government organization of a country to request and access informations in banks of other countries. This is usually done under the diplomatic and mutual surveillance. However the law is strictly invasive for certain business merchant account holders in an offshore bank.
