Process of establishing a bank in Panama with Law&Trust International

Obtaining a banking license in Panama - certain peculiarities

Lawyers of Law&Trust International will help with the establishment of new bank in Panama and are ready to undertake the process of collecting the necessary documentation.

The very process of obtaining banking license in the foregoing jurisdiction can be divided into several stages, the last of which will be the filing of an official application.

Initial stage

Correct action plan shall be primarily developed, in which all parties to the process should adjust and coordinate the overall strategy.

Principal should provide the First Draft of Business Plan, and all persons concerned (from the owner to the regulator) should consider the bank's capability to functioning their high-priority task. CV from the shareholders consisting of 1-2 pages should be submitted, which specifies the details concerning the type of activity that the bank will conduct, and the strategy of attracting clients.

The First Draft of Business Plan should demonstrate as much as possible that the manager (managers) has paid due attention to the clause of bank management, doing business by this bank, as well as the clients whom the bank plans to involve should also be indicated. The information should be stated concisely and unambiguously.

Concerning information about the owner (owners), it is worth noting that it will be interesting and important for prospective/potential clients of the bank to know who owns the financial institution. Attention should also be paid to the transparency of information regarding the owner (owners) of the bank, and it shall be absolute one.

Regarding the principals it is necessary to obtain detailed "Curriculum Vitae" (C.V.) that is information or personal data, summarized in a short form (for each principal). The document should contain complete statement of work experience, all qualifications, as well as photo and address (residential address).

Copies of international passports of principals should also be attached. The information must be verifiable and the qualifications and experience of these persons specified in the documents should be directly related to the sphere of banking business. All the foregoing information is strictly confidential and shall be sent by e-mail.

Appointment of an authorized representative of your organization to act as a contact person is significantly important and responsible task. It is recommended to appoint experienced banker, who speaks Russian, English and Spanish at a sufficiently high level. Initially, he will be the representative of the organization to the regulators of banks. The office in Panama should be rented so that the above person can perform his duties.

Other important functions of such representative also include the following:

• Involvement in and recognition of such person in business and banking communities of Panama are extremely important;
• Cooperation with such organizations as embassies, chambers of commerce, foreign and Panamanian banks, with which it will be necessary to establish appropriate relationships.

Stage of local presence and starting implementation of detailed plan

This stage is characterized by mandatory performance of several tasks simultaneously, among which the task of top priority is the elaboration of the plan.

The company, which will file official application for obtaining banking license in this jurisdiction, shall be established in Panama.

The most detailed estimation of the funds’ flow should be developed, which has to present the expected growth in revenues for 3-5 years.

"Business Administration Plan" shall also be elaborated, revealing the needs of IT-infrastructure, personnel, etc.

Final stage of submitting official application

Since the preparatory work has to be completed before this stage, it can be considered quite simple.

The application is submitted for consideration to the Banking Superintendency.

Depending on the complexity of the plan, formal decision on granting banking license should be expected to be made within from 1 month up to 6 months.

Apply to Law&Trust International for more information. Consultations are possible by phone, in chat or during private conversation at the company's offices.