Panama Tops List of Offshore Banking Destinations

Going big time has its fall backs especially where the IRS is concerned. Big income equals larger taxes and this can cause any investor big headaches. Movement of your hard-earned liquid assets is likely to be detected in financial institutions that are part of the anti-money laundering system aimed at disclosing doubtful clients that integrate income from illegal sources into the legit banking system.

There are a few places left in the world that cater to offshore banking clients by providing solid privacy and protection laws. Offshore banking is a bank located outside the country of residence of the depositor.

Generally offshore banking provides legal, financial and tax advantages to the depositor. The Bahamas used to be a haven for offshore banking but since they introduced stricter banking laws that give the banks the discretion to provide 45% of their collected information about their clients to authorities who ask.

Panama, on the other hand, has total banking secrecy laws in spite of the International Monetary Fund policing each country to report suspicion of illegal activity to local authorities. Bank secrecy laws prohibit bank officials from disclosing information about their clients lest they face fines, termination from employment or worst of all, imprisonment.

Panama also offers clients uninhibited asset growth by providing services which require little or no capital gains or income tax. Putting your money in a Panamanian bank is a great way to grow a nest egg tax free.

Panama bank accounts can be secured for as little as US$695 and come with online banking access, ATM card, and rock solid privacy protection.

Even when banking in countries with good asset protection laws depositors can run into privacy troubles. The Cayman Islands as a good example. The Cayman Islands has laws that send bank officials to jail for disclosing information to the IMF, CIA or Treasury Department.

In recent news a bank owner from the Cayman Islands named John Masterson allegedly reported over 1 year worth of bank records to the United States government that got a lot of US clients into big trouble. If the laws of the Cayman Islands were strictly enforced, Mr. Masterson would be in jail for the rest of his life. Mr. Masterson currently lives free so offshore banking clients beware.

By: Morgan Horsteiner

Find out how to setup a offshore bank account or protecting your assets at the OffshoreLegal.org website.

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