FATCA Law

Member since 04 June 2015

Steven Rich MBAActive member24 March 2016 13:10:55

How are Americans in Panama coping with the U.S. Law requiring all banks to report all U.S. depositors banking information to the IRS (Treasury Dept.)?

According to Wikipedia, "The Foreign Account Tax Compliance Act (FATCA) is a United States federal law whose intent is to enforce the requirement for United States persons (including those living outside the U.S.) to file yearly reports on their non-U.S. financial accounts.聽 The law requires all non-U.S. (foreign) financial institutions (FFI's) to search their records for indicia indicating U.S. person-status and to report the assets and identities of such persons to the U.S. Department of the Treasury."

Many Americans in Panama have told me that this law prevents Panama banks from allowing them to open an account.

Please let me know how you, as an American, have coped with this harsh reporting law in Panama.

PanamaMitch Member

Member since 11 April 2015

PanamaMitchMember24 March 2016 14:54:21

I think if you have an existing account usually you would have no problem as long as you are聽 not depositing earned Panama income to your back account.

Sunnymikkel Active member

Member since 28 November 2012

SunnymikkelActive member24 March 2016 16:05:12

No bank accounts in Panama. It is not necessary to have a Panamanian bank account, We just use the U.S. Bank ATM cards to get cash and the U.S. Credit and Debit cards to purchase what we want at places where they take the cards, which everyone but the smallest stores do. Our U.S. Banks rebate the ATM fees, charge no foreign transaction fees and charge no fees for the accounts or the Credit/Debit cards. FACTA has no effect for us.

GuestPoster11975 Guest

GuestPoster11975Guest24 March 2016 16:15:26

We just opened our second bank account here in Boquete with Banco General, had all the correct paperwork, and yes there is 2-3 pieces of papers you have to sign as the banks must comply with the FACTA rules. Not a big deal though, there is a lot of paperwork. Got the account opened in less then 2 hours. Compared to Multi Bank it was a piece of cake.
Having a Panama bank account is convenient for us as homeowners dealing with vendors doing up grades to our house. Easy to write a local check then go to an ATM and have to get cash all the time and then there is the security factor of carrying all that cash around.

SawMan Serial expat

Member since 19 March 2012

SawManSerial expat25 March 2016 12:54:27

577

Through an Inter-Governmental Agreement (IGA), Panama committed its banks to FATCA compliance and reporting, however, that was the easy part.聽 The burdensome compliance comes next year and it will be possible that some banks will restrict American accounts due to burdensome nature and risks associated with compliance.聽 Banistmo, for example, is not yet reporting as required by FATCA.聽 (FYI, Canada enacted it's own "FATCA" equivalent for its citizens.)聽 So, I think it is possible that some banks will decide to not handle expat accounts or at least small balance accounts.

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mvInterlude Member

Member since 28 November 2012

mvInterludeMember30 March 2016 14:22:58

The intent of FATCA laws, as I see it, is to prevent/control money laundering and overseas hiding of assets.聽 We've had no problems with our accounts in Global Bank here in Panama.聽 There was a sizable amount of paperwork required in setting them up but well worthwhile for the convenience in dealing with local merchants, workers and utility companies.聽 Since we are back in the US nearly half the year, monthly online bank transactions via the internet are a lifesaver... just as easy as back home.