Panama's offshore banking sector no longer uses numbered accounts. In fact, there are no longer any numbered bank offshore bank accounts in any offshore jurisdiction in the world. They are not allowed. So, Panama uses different methods of security to meet the needs of those clients who want to do their banking anonymously. These methods include the formations of foundations and corporations. These financial structures can only be done by lawyers, hence increasing the security by including the lawyer/client confidentiality agreement. But someone has to be a signatory on the bank account, so how do you know that your name is safe at the bank? That is because Panama has strong Banking Secrecy Laws.
Articles 168 and 170 of the Panamanian Criminal Code talk about criminal prosecution for violation of the Banking Secrecy Laws. In the case of people who had this information due to their professions would lose the authority to practice their professions for two years. This is to cover all Panama foundation council members or corporation directors, to further ensure the safety of offshore assets.Anyone is possession of private documents who discloses the information, or anyone in possession of such information which chould cause damages and discloses it with out consent could got to prison for 10 months to 2 years!
Article 74 of Decree 238 say that the Banking Commission cannot investigate individual banking clients. Even if someone comes up with something they cannot reveal their information. If they do they will be subject to Article 101 which is a monetary fine. This can also be broken by a court order.
Articles 168 and 170 of the Panamanian Criminal Code talk about criminal prosecution for violation of the Banking Secrecy Laws. Anyone is possession of private documents who discloses the information, or anyone in possession of such information which could cause damages and discloses it with out consent could got to prison for 10 months to 2 years! In the case of people who had this information due to their professions would lose the authority to practice their professions for two years. This is to cover all Panama foundation council members or corporation directors, to further ensure the safety of offshore assets.
Panama doesn't like to go against its secrecy laws and it is only under suspicion of serious criminal activity where it will consider it. These serious crimes include terrorism, child pornography, money laundering and drug smuggling.
As far as international agreements, Panama is only a member of the Mutual Legal Assistance Treaty (MLAT). There are several conditions that must be met in order for Panama to comply to this treaty and bend their own Secrecy Laws. The crime under investigation must be a crime in both countries. There must already be a case filed in the requesting country's national court. The requesting country must be specific on what information they wish to obtain. They must show that the information is absolutely required to prosecute the case. All of these are subjective and Panama could decide to conduct it's own investigation first before giving up any information to foreign countries. This could delay the proceeding substantially. Only extremely serious crimes would be considered such as drug smuggling, terrorism and money laundering.
So, Panama is willing to hold off the world to up hold it's Banking Secrecy laws. What could be safer than that?
Articles 168 and 170 of the Panamanian Criminal Code talk about criminal prosecution for violation of the Banking Secrecy Laws. In the case of people who had this information due to their professions would lose the authority to practice their professions for two years. This is to cover all Panama foundation council members or corporation directors, to further ensure the safety of offshore assets.Anyone is possession of private documents who discloses the information, or anyone in possession of such information which chould cause damages and discloses it with out consent could got to prison for 10 months to 2 years!
Article 74 of Decree 238 say that the Banking Commission cannot investigate individual banking clients. Even if someone comes up with something they cannot reveal their information. If they do they will be subject to Article 101 which is a monetary fine. This can also be broken by a court order.
Articles 168 and 170 of the Panamanian Criminal Code talk about criminal prosecution for violation of the Banking Secrecy Laws. Anyone is possession of private documents who discloses the information, or anyone in possession of such information which could cause damages and discloses it with out consent could got to prison for 10 months to 2 years! In the case of people who had this information due to their professions would lose the authority to practice their professions for two years. This is to cover all Panama foundation council members or corporation directors, to further ensure the safety of offshore assets.
Panama doesn't like to go against its secrecy laws and it is only under suspicion of serious criminal activity where it will consider it. These serious crimes include terrorism, child pornography, money laundering and drug smuggling.
As far as international agreements, Panama is only a member of the Mutual Legal Assistance Treaty (MLAT). There are several conditions that must be met in order for Panama to comply to this treaty and bend their own Secrecy Laws. The crime under investigation must be a crime in both countries. There must already be a case filed in the requesting country's national court. The requesting country must be specific on what information they wish to obtain. They must show that the information is absolutely required to prosecute the case. All of these are subjective and Panama could decide to conduct it's own investigation first before giving up any information to foreign countries. This could delay the proceeding substantially. Only extremely serious crimes would be considered such as drug smuggling, terrorism and money laundering.
So, Panama is willing to hold off the world to up hold it's Banking Secrecy laws. What could be safer than that?
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