Opening a Bank Account in Panama as a Canadian Property Buyer

Panama's reputation as a banking secrecy jurisdiction — culminating in the 2016 Panama Papers leak, which implicated thousands of individuals and companies in offshore tax evasion through Panamanian shell companies — led to significant international pressure on Panama from FATF, GAFILAT, and the OECD. Panama was temporarily placed on the FATF grey list, which created major incentives for reform. Panamanian banks responded by implementing rigorous AML and KYC procedures that in some ways exceed what you would find at a Canadian or US bank for a new account opening. The reference letter requirement, source-of-funds documentation, and extended review periods reflect this compliance environment. It is not that Panama doesn't want foreign clients — it is that Panamanian banks have learned that inadequate due diligence leads to massive regulatory consequences.

A proper Panamanian bank reference letter from your Canadian bank should be on the bank's official letterhead, signed by a branch manager or senior officer (with their name, title, and contact information), dated within 60–90 days of your bank application, and should state: your full name, your account number(s) at that bank, how long you have been a customer, the type of accounts held (chequing, savings, investments, etc.), and a statement that you are a customer in good standing with no adverse banking history. The letter should be addressed generically ('To Whom It May Concern') or specifically to the Panamanian bank if you know the name. Request this letter at your Canadian bank with at least 5–7 business days lead time. Some banks charge a small fee ($30–$50 CAD) for reference letters.

Not necessarily for the property closing itself — the actual purchase funds can be wired directly to the Panamanian notary's escrow account (fideicomiso cuenta de custodia) from your Canadian bank account. Your real estate attorney will provide the wire instructions. However, for everything that comes after the purchase — paying utility bills, HOA fees, property taxes, domestic workers, repairs — you need a way to have funds in Panama. A Panamanian bank account is the cleanest long-term solution. Some expats manage with a combination of Wise transfers and USD cash for the first few months while their bank account application is in process.

Some Panamanian banks have attempted to create remote account opening processes, but in practice, the compliance requirements almost always result in the need for an in-person visit at some point. Most major Panamanian banks (Banco General, BAC, Global Bank) require in-person identity verification — you must present your original passport to a bank officer. Some banks with international operations or those serving specific international private banking clients can open accounts remotely through an authorized representative or correspondent bank arrangement, but these are typically higher minimum balance accounts ($25,000+ USD). For a standard personal bank account, plan to visit a Panama branch in person.

Absolutely yes. Most Canadians who own property in Panama maintain their Canadian bank account indefinitely. Canadian banks can receive CPP and OAS direct deposits, which are paid in CAD — you then transfer USD equivalents to Panama as needed. Canadian investment accounts (RRSP, TFSA, non-registered) remain in Canada. If you sell the property or leave Panama, having a Canadian account to repatriate funds is much simpler than trying to open a new one after years away. And frankly, having a Canadian financial base provides a safety net — if you have a medical emergency requiring repatriation or need to fund an unexpected Canadian obligation, your Canadian account is your immediate resource. The small fees of maintaining a Canadian account are trivial relative to the financial flexibility it provides.