PATTON MORENO & ASVAT
 
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Business Letters
Getting the Deal Through – Loans & Secured Financing 2016 with contributions from Ms. Ivette Martinez. Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through: Loans & Secured Financing 2016, (published in August 2015; contributing editor: George E Zobitz, Cravath, Swaine & Moore LLP) For further information please visit Click Here
Tax Regulations in Panama: The Place to invest in the Americas by Elias Solis Gonzalez. This article appeared in the Lawyer Issue Magazine 2015 Click Here
The International Comparative Legal Guide to Shipping Law 2015 with contributions from Ms. Khatiya Asvat and Ms. Nadya Price

"This article appeared in the 2015 edition of The International Comparative Legal Guide to: Shipping Law; published by Global Legal Group Ltd
(http://www.glgroup.co.uk/), London.” (please hyperlink www.iclg.co.uk)
Getting the Deal Through - Aviation Finance and Leasing 2015 with contributions from Ms. María de Lourdes Marengo.

Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through: Aviation Finance & Leasing 2015, (published in June 2015; contributing editor: Mark Bisset, Clyde & Co LLP). For further information please visit
www.gettingthedealthrough.com
Adding new talents

Ensuring our firm’s commitment for continued growth, we are pleased to announce the addition of new associates and assistant attorneys to strengthen our legal team to guarantee our customers an efficient and timely service.

We welcome Demetrio Rodriguez, Harry Aswani, Jorge Ventre and Michele Hibbert, who with their talent, experience and dedication will join the legal teams in the Practice Areas of Administrative Law, Commercial Law, Immigration and Labor Law, Real Estate and Corporate Law, among others.
This article appeared in the 2014 edition of The International Comparative Legal Guide to: Shipping Law; published by Global Legal Group Ltd, London (http://www.glgroup.co.uk/)
Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through – Aviation Finance & Leasing 2014, (published in June 2014; contributing editor: Mark Bisset, Clyde & Co LLP) For further information please visit www.GettingTheDealThrough.com
This article appeared in the 2014 edition of The International Comparative Legal Guide.
New Law To Regulate Spin-Offs As Corporate Reorganization Scheme.
Securities Update: Regulation Of Forex Activities In Panama
Securities Update: Recognized Jurisdictions
Solar Energy Article
AMP Newsletter
This article was first published in Getting the Deal Through – Restructuring & Insolvency 2013, (published in November 2012; contributing editor: Bruce Leonard of Cassels Brock & Blackwell LLP). Reproduced with permission from Law Business Research Ltd. For further information please visit www.GettingTheDealThrough.com
A Practical Insight to Cross-Border Securitisation in 41 Jurisdictions
Tax update: Law 31 of 2011
Panama Chapter RI 2011
PMA Tax Update - Ley 49 - 2009
Offshore Banking Regulations in Panama
Hedge Fund Admin. Roundtable
Article published in Global Property Guide
Panama’s New Limited Liability Corporation Law
Article was first published in Getting the Deal Through – Restructuring & Insolvency 2009
Newsletter Immigration Law
"This article appeared in the 3rd edition of The International Comparative Legal Guide to: Securitisation ; published by Global Legal Group Ltd, London www.iclg.co.uk"

Banking Law

Panama has the most important banking center in Latin America, and one of the most important in the world. Advantages as the monetary system, the absence of exchange restrictions and fiscal benefits that may be obtained in international transactions, have motivated a great amount of internationally recognized banks to establish offices in Panama.

The Banking Center of Panama is made up of 29 Banks of International License, 59 Banks of General License and 14 Banks of Representation license. The International Banking Center of Panama approximately present a level of total assets of U.S. $36.233 million dollars.

The Banking Center is governed by Law N° 9 of 26 of February of 1998 that reformed the legal regime of the banking activity in Panama. From this Law the Banking Center of Panama is organized having at the top to the Superintendency of Banks, which has between its functions to control the Banking Agencies that operate in Panama, to grant banking Licenses, to take part, to reorganize or to eliminate banks and to exert all the functions that the Law grants.

Our services include the obtaining of:

BANKING LICENSES

In order to exert the banking business oin the Republic of Panama it is necessary to count with a Banking License of the allowed ones by the Law:

1. INTERNATIONAL LICENSE: Allows to direct from an office in Panama transactions that are perfected, they consume or they have its desired effects in the outside and to make all those other activities that the Superintendency authorizes.
2. GENERAL LICENSE: Allows to exert the business of bank of the Republic of Panama and transactions that are perfected, they consume or they have its desired effects in the outside and to make all those other activities that the Superintendency authorizes.
3. REPRESENTATION LICENSE: Allows to establish one or more offices of Representation and to make all those other activities that the Superintendency authorizes. In this case, the representation office will have to be identified like such.

In order to obtain some of the three licenses above described it will be necessary to fill the requirements that the law demands, as well as those that the Board of directors of the Superintendency of Banks can ask for.

These requirements basically are:

1. Request by means of lawyer properly authorized;
2. Prove of the identity of the main shareholders;
3. Suitability of the administrative body on the basis of its experience, studies, integrity and professional file;
4. To fulfill the minimum capital demanded and prove of the origin of these funds;
5. Business Plan that demonstrates the economic viability of the Banking Agency that asks for the license.

The Superintendency of Banks has a prorogueable term of ninety (90) days to approve or not it respective request of license. to be approved the request, the Superintendency of Banks will authorize a temporary leave of operation of ninety (90) days to aim that can be registered in the Public Registry the pact of the new society that asks for the banking license using the name "bank" or anyone of its derivatives, while the definitive license is transacted. Once obtained the temporary permission, and within the term of the same one, the request of definitive license in fulfillment with the requirements will be due to present/display that the Superintendency of Banks demands, which will have to decide if it approves or not within the one hundred twenty (120) days later calendars to the receipt of the request, which could be prorogued by virtue of the circumstances of the case. As of the 2003, the banking organizations with general license with total assets until of 100 million dollars will have to pay the sum of U.S. $50.000.00, imposed that is increased as their assets are greater, nevertheless, in his first single year of operations they will pay half of the established tax and the banking organizations of international license will have to pay the sum of U.S. $50.000.00 for special annual tax on the banking organizations. The development banks and micro finances will pay U.S. $15.000.00 and the change houses will pay U.S. $2,500.00.

Operations banking made within territory of Republic of Panama will not generate rent burdenable for effects of Law Fiscal, when this rent derives from activities directed from an office in Panama transactions that are perfected, consumes or has its desired effects in the outside.

REQUIRED CAPITAL

For the exercise of the banking activity in Panama it is necessary to count with a minimum capital paid or assigned to operate that the banking law establishes in ten million dollars (U.S. $10.000.000.00) for the banks with general license; for the banks of international license the paid or assigned minimum capital will have to be of three million dollars (U.S. $3.000.000.00). In both cases a deposit of guarantee of two hundred fifty thousand dollars (U.S. $250.000,00) or one bond investment will be due to constitute of banking guarantee by the same value which will have to be briefed in the National Bank of Panama. The Banks will have to maintain a reserve of originating capital of the gains that are accumulated in books, destined to reinforce the financial situation of the Banks that could not be diminished without previous authorization of the Superintendency of banks. The Superintendency of Banks guards by the solidity and efficiency of the Panamanian banking system the general license banks will have to maintain funds of capital corresponding to at least the eight percent (8%) of the total of their assets and operations outside their balance, weighed based on their risks. This percentage could be increased by the Superintendency of Banks.

THE SUPERINTENDENCY OF BANKS

The new approved banking Law by means of Law of the 26 of February of 1998, reformed the Panamanian banking system replaces the previous National Banking Commission by the Superintendency of Banks, being this organism independent of the State whose essential functions are those of guarding by solidity and efficiency of the banking system, fortifying and to foment the propitious conditions for the development of Panama like international financial center, to promote the public confidence in the national banking system, to supervise the banking solidity, liquidity, control and procedures, as well as the exercise of the banking profession and to sanction the violations of the banking law.

The Banking Superintendency is composed by a Board of directors and a Superintendent. The Board of directors is composed by five (5) directors with right to voice and vote, plus the Superintendent, named by the Executive Agency. The Board of directors will choose a President who will exert the position by the period of a year. The directors are named by the term of eight (8) years prorrogables by an equal term and are designated of stepped form. The Superintendent has to his position the tasks of administration and the representation of the organization and will guard by the fulfillment of the norms of the banking law and the decisions of the Board of directors.

Within our clients we can mention:

  • Mi Banco
  • Banco Mercantil, S.A. (República Dominicana)
  • MetroBank

Initial Contact


MAIN OFFICES
Paseo Roberto Motta
Capital Plaza, Floor 8
Costa del Este, Panama
P.O. Box 0819-05911
Panama, Republic of Panama

Phone number:
(507) 306-9600
Fax numbers:
(507) 263-7887

E-mail:
info@pmalawyers.com
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