Banking Finance

Although it seems weird to write on a specific incident that I had with Mr. Bank, I felt, for the sake of myself and other customers, that I must share with my reasonable readers my unique experience that I had on sub-standard service, irresponsible behavior, and unexplainable actions by Miss Monkey in dealing with my Housing Loan.

Let me first introduce myself as one of Mr. Bank’s customers, and, in the same time, one of the victims of such a lady – Miss Monkey.

I did not imagine that a day will come to see how I get kicked by monkeys for being a customer of Mr. Bank. It seems, during these days of the modern time, and the so called the twenty first century, I had the unbelievable chance to see monkeys running around and driving financial institutions – banks – instead of being trapped in dirty cages in the national zoo. Or maybe the country did not have the capacity to control those huge number of monkeys, so they got the golden opportunity to escape from the zoo and take advantage of the deteriorated reality of the human race to spread inside the community as apes and take reputable positions in the workplace. This picture reminds me with the movie “Planet of The Apes.”

I have a very interesting story to share with all my lovely readers about Mr. Bank, who appeared to employ monkeys instead of human beings.

My story started when I got the green light from the developer to go ahead and initiate the process of financing the property that I committed in buying two years back. Upon the advice of a dear friend of mine, I chose Mr. Bank for such a transaction. Maybe I had in mind specific requirements in doing such a transaction but I assumed working with human beings as bankers will make everything easy and smooth. I did not realize at that time that I was diving deep into my dreams

I will not go through the tiny details, and stupid difficulties of applying for such a housing loan with Mr. Bank, but I will slowly go through the events that took place during the last week of the month.

Missing Documents:

The interesting story started on Tuesday when the developer, from whom I bought my property, approached Mr. Bank for the execution of Mr. Bank’s conditional undertaking while carrying all the required documents that prove compliance with the listed conditions.

At that point in time, Miss Monkey made lot of problems and huge issues in order not to execute the presented conditional undertaking, and not to make the payment to the developer on the basis of missing the loan agreements, which were signed by the borrower, from Mr. Bank’s custody.

I am sure you agree with me that it is neither the beneficiary’s nor the customer’s responsibility if Mr. Bank happened to lose such essential and important documents.

The Developer said to Mr. Bank, “Excuse me, what the hell you are talking about. I have in my hand a legal obligation instrument that obliges you – Mr. Bank – to pay on satisfying the conditions listed in the letter irrespective to the condition of the relationship between you and your borrower.” Miss Monkey said, “the case is understood but Mr. Bank is missing the loan agreements that were signed by the borrower, and they are essential for the execution of such commitment.”

Did you see how the banking secrecy was breached, and the irresponsibility was unintentionally exposed. What a smart Miss Monkey – who had the power to stop the execution of such document on no basis.

Recovering The Documents:

Fortunate enough, I had reasonable human being available with Mr. Bank to work logically and professionally to save the situation, and, accordingly, the payment was authorized, and disbursed to the developer. As Miss Monkey refused to release the remaining balance of my housing loan into my current account on the basis that Miss Monkey wanted to recover the missing documents, Miss Monkey requested me to sign on new documents in order complete the file, and, accordingly, Mr. Bank will release the remaining balance of my housing loan to my current account.

It seems that if Mr. Bank loses important documents, the victim has to pay the cost of recovering such documents.

I said to Mr. Bank, “what on earth are you talking about. Is it my responsibility if Mr. Bank is mixed-up on where the documents were placed.” Mr. Bank, surprisingly, was firm in his reply by saying “the funds will not be released unless the complete documents are in place.”

Anyhow and with hesitation, I expressed my complete willingness to sign another set of such documents. So, I said to Mr. Bank, “Okay, send me the documents by email as an attachment immediately in order for me to print the attachments, put my signature on the documents, and send them back to you by courier.” Two days – Wednesday and Thursday – passed, and I did not receive anything.

As per your estimate, how long does it need to send an email?

Nevertheless, I got a call from Mr. Bank on Thursday evening, instead of receiving the waited email, to inform me that the original sets of documents were found. Therefore, Mr. Bank will be in a better position to release the funds on the following morning of Friday.

Could you please help a normal human being, like me, to understand how Mr. Bank in the first place claimed that he lost the documents, and, then, found the documents laying in the safe, as per Miss Chimpanzee’s story.

New Document Is Missing:

On Friday morning I made an inquiry on the release of my money. Unfortunately, I got a slap on my face instead of money in my current account when Miss Chimpanzee told me that the monkeys of Mr. Bank forgot to make me sign on a special promise.

In reaction to Miss Chimpanzee I got wild at that moment in time, and I told Miss Chimpanzee that this promise was already available in the Housing Loan Agreement, which I signed with Mr. Bank, as a term of the contract.

How come the monkeys of Mr. Bank do not know what terms they make the customer to sign on, and, on top of that, do not communicate immediately and efficiently with the customer if there was something missing or incomplete.

I asked Miss Chimpanzee, “why do I need to sign on another paper? and if it was the case, why did not you call me, notify me, and send me the document in order to do the needful at the earliest.” I made a huge buzz out of such incident.

But in the same morning of that Friday, I got a call from Mr. Bank, who told me that the funds would be released into my current account within maximum of one hour. That telephonic conversation was held around 10:30am in that morning.

Amazing, how come in the morning I was required to sign on a specific document, where as in few minutes everything was ok.

Anyhow, I made an inquiry on my account’s balance in the afternoon of Friday at around 3:45pm to find out that the internal transfer was not done.

Were you able to notice how many monkeys were involved in order to release the money, and, unfortunately, they were unable to make any kind of development, just because of Miss Monkey’s mood.

On Saturday morning I was approached by Mr. Bank to send an electronic instruction by email because the excuse at that time turned to be that Miss Monkey did not have in hand a clear instruction from the victim to where the funds should be transferred.

As I have an email indemnity in place with Mr. Bank, I sent an electronic instruction by email to request the transfer of the remaining balance into my current account. Although I sent the electronic instruction to the bank at around 10:45am in the morning, and, accordingly, Miss Monkey was clearly, and immediately instructed to execute the transfer, by end of day Saturday the instruction was not executed and the transfer was not made.

What shall I do???

A bank account is very important for OFW since it will be the account where the money will be sent from abroad. Opening a new savings account can be hard since you do not know which bank is the best for your criteria. There are actually many banks in the Philippines so choosing one is not easy. In this posts, you can acquire information which bank to pick to remit money to the Philippines.

1. Banco de Oro

Banco de Oro or BDO placed the topmost in the Philippine banks for OFW. In 2009, BDO was named by the Central Bank of the Philippines as the No. 1 bank for OFW remittances. It has severalk services and products offer especially to OFW such as the Kabayan Savings account which can be applied by an OFW with P50 initial deposit and without maintaining balance. BDO has also other types of banking like Internet, telephone and ATM banking.

2. Bank of the Philippine Islands

Bank of the Philippine Islands (BPI) was named by Finance Asia the best cash management bank in the Philippines for 2009. I personally used BPI for my money transfer to the Philippines. I believe BPI is one of the advantageous in terms of customer service and quick in answering to client’s problems.

3. Metrobank Philippines

Metrobank is a famous bank in the Philippines and listed as a public enterprise in the Philippine Stock Exchange. Last year, it belongs to the top five remittance bank of OFW. It has a broad network of branches not only in the Philippines but also in other countries such as US, European nations, Korea and Middle East countries. Many OFW chooses Metrobank because of its good customer service and plenty of branches across the country.

4. Chinabank

Ranking as fourth biggest universal bank by market capitalization in the Philippines. Chinabank is emerging as one of the preferred banks of OFW and many Filipinos. With its broad banking services through its multitude branches and ATM machine across the country, Chinabank is going available nationwide. It has online, ATM and mobile banking which you should use to transfer cash to different banks with very low fee.

5. Union Bank of the Philippines

In the Philippines, Union Bank places seventh in the largest banks in regards of assets. It is a public compane listed in Philippine Stock Exchange. Union Bank is an an alliance among the companies and government institution in the country. With its broad range of services, many people and OFW find Union Bank a good option for saving and money transfer purposes. You can remit money to the Philippines using Union Bank by PayPal, through money transfer partners and by bank to bank wire transfer.

Selecting a bank for money transfer purposes depends on your needs. Almost all banks cater same products but you need to choose those which are customer-oriented and answers to client’s problems fast.

Banking jobs, especially investment banking jobs are very much in demand. Every young kid who is good with figures wants to be an investment banker. Why? This is simply because investment banking is one of the most lucrative jobs around!  But we all know that it takes time and dedication to succeed. You need to start off with entry level banking jobs just like everyone else!

Some Job Profiles

Having said that, I must tell you that investment banking is not the only banking job around, there are different types of banking jobs, but it is not surprising that about 67% if the total banking jobs are those of a bank teller’s.  Some important job positions in a bank are:

Bank Manager – The man who runs the show. You need to supervise the daily operations of the bank and find out whether bank employees are doing their work as planned.
Accountants – If you are good with accounts and are qualified, you can become an accountant with a bank. This job is an important one because the work done by an accountant or rather, a team of accountants is presented before investors, tax authorities etc. and determines the financial standing of the bank.

Financial advisors- As a financial advisor, you will be making recommendations and suggestions to people who are clients. This is a very important job and also one which holds great responsibility.

Banking Job Tips

Banking careers are undoubtedly one of the most promising fields, but in order to succeed, you should keep a few things in mind:

• Research – Be aware of all the latest goings on in the business world. If you don’t know about the latest happenings, then you won’t be able to raise money for your bank or clients. After all, it is your responsibility to ensure that people are making a wise investment. It can’t be taken lightly, now can it?

• Networking – Banking careers, almost like every other field have become synonymous with networking. One can’t get anywhere until they establish all the right contacts. So get to know people. Attend gatherings, parties to-dos etc. Anything that will get you in front of people from your field!

• Fees – As an investment banker, you need to do some research before you quote your fee.  Try to ensure that you get back a good amount, as compared to what you invested in the first place.

• Dedication – Everyone knows that you can’t succeed in any field without dedication. This is especially true for banking jobs. You have to devote all of your time to the service of the bank and to clients. If you are an investment banker, you will have additional responsibility. People will want to know from you how they should spend their money, don’t disappoint them!

Mortgage banking jobs are also quite interesting. So if investment banking or being a bank teller is not your thing, you can always go in for this job. There are various types of banking jobs, take your pick wisely, make sure you are equipped to handle your office!

For undergrads and MBA students, the news that they have been selected for an interview at an investment bank comes with both excitement and dread. A position as an analyst or associate in corporate finance can be the first step towards a highly successful and highly lucrative career. Investment banking interviews, however, can be some of the most intimidating interviews out there, so let’s take a look at how to get prepared.

 

 

Before we jump into interview practice mode, we should take a step back and think about how we want to come across in the interview. In short, investment banking candidates should come off as bright, confident and likeable.

 

In the final cut of selecting a hire, investment banks have already determined which candidates are smart and capable, so the decision comes down to who they like the best. So in addition to knowing a thing or two, candidates must remember to come across as a fun person to work with as well.

 

Know Your Story

 

Like any interview, candidates should have stories prepared about their lives that discuss their past, present and future. These are great answers for the standard questions:

 

“Tell me about yourself.” Or “Walk me through your résumé.”

“Why are you interested in investment banking or this firm?”

“Where do you see yourself in five to ten years?”

 

Candidates are highly likely to receive these or similar questions in any interview, and having succinct, practiced answers to them will give the impression of a polished candidate.

 

Your past story should highlight events that have qualified you for or gotten you interested in investment banking. Your present story should demonstrate why you want the particular position, how it is a logical step from where you are coming from and perhaps touch on where you hope the position will lead.

 

Your future story should discuss how investment banking will lead to where you want to go. Good future ambitions might be a managing director position in investment banking, a principle at a private equity firm, a CFO or perhaps and entrepreneur. In any case, you should communicate that those are long-term ambitions and you look forward to the experiences you’ll have in the position you’re interviewing for.

 

Know the Industry and Firm

 

Where investment banking interviews begin to get trickier is that firms will expect you to know what you’re getting into. If you confuse an equity analyst position with an analyst position in corporate finance, for example, you will not make it any further in the process.

 

You should understand the major divisions within an investment bank — sales & trading, corporate finance, research, etc. You should understand the hierarchy of positions within corporate finance — analyst, associate, vice president, managing director — and what each position does.

 

At the macro level, you need to understand the major differences between bulge bracket investment banks, middle market and boutique investment banks. You should also have a good answer for why you would prefer one type over another (and be sure that you prefer the type you’re interviewing with).

 

You should also understand the particular expertise that your firm has — transaction types or business sectors where it is active. Find some recent transactions that the firm has completed and be able ask smart questions about some of them.

 

You may be asked if there are any other firms or companies that you are interviewing with. If you are interviewing with other investment banks, you can be honest and say that you’re taking the opportunity to get to know the investment banking landscape. You want to communicate that you’re most interested in the firm you are speaking with and be able to give good reasons why.

 

Most banks will see it as a plus that you are interviewing elsewhere and may be more inclined to try to hire you. If you don’t have other interviews with banks, be sure to network and talk to people at other banks. If you can respond that you’ve at least been doing some networking in the industry, you’ll come across as a stronger candidate.

 

Know Your Financial Models

 

Candidates should also know what they’ll be working on when they come to investment banking. Having a basic understanding of pitches, deal execution and the ebb and flow of the corporate finance office is important.

 

To that point, you should also be familiar with some of the financial models you will likely be using — discounted cash flow, comparable companies analysis, precedent transactions analysis (sometimes called M&A comps) and LBO analysis.

 

Understanding how these models work and the theory behind them will help you to answer a lot of the technical questions that might get thrown at you in an interview. Know the capital asset pricing model (CAPM) and how to calculate the weighted average cost of capital (WACC). Know how to un-lever a beta.

 

Know the Marketplace

 

Be sure to get up to speed on financial markets. If you can read financial news regularly and follow the reports of an economist or two, you’ll be prepared to answer questions that might get thrown at you about the markets:

 

“Where do you see interest rates headed over the next six months and why?”

“Where did the Dow close yesterday?”

“Do you have any stocks that you follow? Tell me about them.”

 

Brain Teasers

 

Another type of question you may encounter in an investment banking interview is a brain teaser. These questions are meant to catch you off guard and see how your mind works.

 

“How many golf balls will fit inside Yankee Stadium?”

 

You should be able walk through your thought process and come to a logical answer, even if it’s not the right one. You could say:

 

A golf ball is a little over two inches in diameter, so you could fit about five across in one foot of space or 125 in a cubic foot. It’s about 400 feet from home plate to center field, so Yankee Stadium is about one thousand feet long.

 

It’s shape is like a half sphere, so you could use the formula for the volume of a sphere — four thirds pie r cubed — divided by two to calculate the volume in feet. Then you multiply by 125 to figure out how many golf balls would fit.

 

That would be an adequate answer to a brain teaser. If any of your assumptions are wrong, it doesn’t matter as much as your logic. Get out a piece of paper during the interview and write out your assumptions if you need to. Get a hold of a list of brain teaser questions and have someone practice with you.

 

Ask Good Questions

 

Before the interview is over, you should always ask some good questions. There has been a lot of change in the investment banking landscape, so there are lots of great questions to ask:

 

“How has the merger with such-and-such firm gone?”

“How has the role of private equity changed since the financial crisis?”

“Do you foresee a surge in M&A activity in any of the industries you work with?”

 

There are many more questions out there. You will usually be given an opportunity to ask questions, and this is your chance to take control and show that you’re prepared. Write some smart questions out before the interview and take them with you. No matter what questions get thrown at you, you can at least demonstrate that you can ask smart questions — a valuable skill in investment banking.

 

Final Touches

 

When you finish the interview, be sure to smile and thank the firm for talking with you. Try to get a hold of business cards and send thank you emails when you get home.

 

For on-site interviews, be sure to treat everyone you encounter with respect including administrative assistants, analysts and associates. Even analysts may have the opportunity to comment in the hiring process of associates, so it’s important to make a good impression on everyone.

 

Be patient with the hiring process. Ask about the firm’s hiring timeline and respect it. Don’t follow up until after their deadline has past.

 

Investment banking interviews can be some of the toughest you will come across in your career, so be sure to take preparation seriously. Focus on coming across as a bright, confident and likeable candidate, and you will put yourself in the best position to get hired.

 

Want to learn about comparable companies analysis and see a sample model? Visit Finance Ocean. Or try taking a finance quiz!

 

 

The history of banking dates back to the ancient times; in fact, the earliest banks were the ancient religious temples. People then stored their golds and other precious belongings in the temples because these places were strongly built, were always guarded, and most of all, were sacred. In ancient Greece, financial transactions were also done in temples and credit notes were already being used to reduce risks in carrying and carting money from one place to another.

Since those times, banking evolved in many aspects. Banking regulations were formulated, additional services such as lending became part of banking and things such as adding interest to loans became common bank practices. Now with the emergence of the latest technologies and the Internet, banking has taken a new face. People can now access bank account online and transact business with the bank with greater convenience and security through the Internet.

Online Banking

Performing bank transactions through the Internet is generally referred to as online banking or Internet banking. This form of banking allows consumers to directly access their bank account online (usually savings account) and obtain any information about their account. This direct-to-consumer system is faster and more convenient for consumers compared to traditional banking systems. Especially if you are to withdraw money after banking hours, this banking system may be your easiest and sole solution. You just have to connect to the Internet trough your personal computer and access your bank account in an instant.

Online-only banks

Many popular banks offer online banking as one of their services; however there are also some banks that transact businesses solely online, so you have no other choice but to access your bank account online and avail of other bank services through the Internet. The latter are referred to as online-only banks. These banks virtually exist yet they provide services traditional banks offer, only that they are done through the Internet.

Benefits

Today as more and more time are consumed by people in using the Internet in several activities, including getting access to their bank account online, online-only banks proved to be more convenient and beneficial. Aside from the fast transactions, one may also benefit from the bank’s high interest rates and budget-friendly transaction fees considering that online-only banks operate only online. Cost of processing bank transactions are relatively lower so the bank can afford to give consumers high interest rates on savings account.

Online Banking Industry

Although a lot are using the Internet, online-only banking industry began to grow only sometime in 2000 when a popular online bank devised much simpler and more convenient banking transactions online and paid consumers high interest rates. Earlier banks that tried this form of banking did not succeed because of their expensive transaction fees and lower interest rates. Moreover, procedures in getting access to bank accounts online were more complicated and consumers were afraid of Internet fraud. The industry eventually grew bigger and more stable beginning 2003 as the use of the Internet got more commonplace, prevalent and secure.

Banks are often considered to be the best treasurers. Selecting a bank is a crucial decision and it should not be influenced or impulsive. There are a number of financial institutions offering multifarious fringe benefits to customers. Sometimes choosing the right bank becomes an overwhelming task. It does not matter what account you intend to open, you need to conduct a proper research on the options available, before deciding on a particular bank.

Your primary concern should revolve around the ability of the institution to meet your specific need. In addition to this, it is essential to determine the annual banking charges involved and the standard of service that a particular bank offers. It pays to call and take an appointment with a bank executive to get an idea of the standard of customer service provided by the bank.

Tips for selecting the right bank for you:

There are several tips on how to select the appropriate bank for you, one that would provide you with the best possible service and benefits. The basic tips are as follows:

Shop around

It is necessary to shop around for a bank that would offer the services you expect. It is beneficial to opt for a bank that is insured by the FDIC. The insurance is a guarantee of insurance up to $100,000.

Bank Fees

There are different fees attached to the various services offered by the bank. Banks try to make their profit from the funds generated via these fees. The fees that you need to enquire about are ATM fees, flat monthly fees, overdraft protection fees, fees charged on using ATMs that do not belong to your bank and commission charged if you stop payments on checks. In addition to this, some banks even charge a fee for writing checks, dropping below the minimum balance fees, canceled checks, monthly statements, inquiries on the bank balance and closing of your account.

Location

The location of the bank is very important. It is essential to have easy accessibility to the bank you choose, for conducting and monitoring your monetary transactions regularly. Sometimes, the banks charge extra fees for using an ATM machine that does not belong to them. It is very important to deal with a bank situated at a convenient distance from your residence, to ensure an effortless access to your money.

Online banking

Online banking has evolved as a major necessity for avid Internet users. It makes the banking transactions more convenient, as you could pay bills online, check your bank balance, transfer funds from one bank account to another and link onto other financial institutions from home.

Details of a bank account:

Most banks offer different types of checking and savings accounts. It is beneficial to opt for a bank that charges low or no fees to write a check, if you frequently transact that way. If you believe in saving, you need to search for a bank that offers a good rate of interest on the savings account.

You should conduct adequate research on the various pros and cons of selecting a particular bank.

Today Panama has become the Switzerland of Latin America. There are 150 banks in Panama many of which have their name on a 40 story modern skyscraper. Panama is often touted as having the best banking secrecy laws in the world. This author believes this to be true and we will address the bank secrecy laws of Panama in depth.

The first important point to look at is the existence of any tax treaties that Panama may be in with any other countries. This is an easy topic since Panama has no tax treaties with any other countries. Tax treaties can be privacy invasive for a banking client. Under some treaties the bank must collect a certain percentage of taxes from interest income paid to the clients and this money is turned over to the client’s home country. Other treaties call for an exchange of information so if a requesting country wanted to gather certain facts about a bank account or if a certain constituent of theirs had a bank account the bank would be obligated to provide the information. The European Union Withholding Tax Treaty is a very relevant treaty.

The next type of treaty one must look at is called the Mutual Legal Assistance Treaty, or MLAT. This treaty allows countries to request information from other countries in the treaty. The general way this type of treaty operates is through diplomatic channels. Panama is in such treaties. The requesting country must have a criminal case on file in the national courts of their country. They would then cite this case already in their criminal courts when the request for information is made. The requesting country would a need to show that the requested information about the Panama bank account is absolutely required to successfully prosecute the case and that the requesting country has no other way to obtain such evidence. Then the request is considered by Panama. Panama may ask for more information. Panama could deny the request on whatever grounds they wish to use. Panama could also decide to conduct their own investigation because they feel that some Panama laws may have been broken and delay the MLAT request until after they have concluded their investigation which may be some years. The statue of limitations could expire before Panama completed their investigation. This is not to say that Panama is in the habit of thwarting requests for information but Panama does have a right to investigate crimes that took place in their jurisdiction. As a result of these investigations they could confiscate assets and prosecute individuals under their own laws.

For the MLAT to take effect the violation in question must be a crime in both the requesting country and the country the information is requested from. Various MLAT treaties have all sorts of details and exceptions and should be read individually if you are seriously interested in a particular treaty. Panama not only has no tax treaties with any other nation but all income tax related offenses in Panama are civil offenses only, not criminal offenses. So tax matters are not a crime in Panama. Thus Panama does not participate in requests for information in tax offenses. Panama does cooperate in certain areas freely. If one acts fraudulently while in the capacity of a fiduciary in a financial relationship Panama will cooperate. Panama also cooperates in cases of narcotics trafficking, money laundering, terrorism and child pornography.

The Panama Bank Secrecy laws are contained in a number of different legal statues. We will go through some of the relevant ones:

The Panama National Banking Commission was formed by Cabinet Decree 238 of July 2, 1970.

Article 74 of Decree 238 deals with protecting the privacy of Panama bank clients. It states that the Commission is prevented from conducting or requesting investigations concerning the banking affairs of any bank clients. Any data obtained by the Commission in the course of its normal regulatory functions may not be revealed to any person or authority, except if subpoenaed in accordance with the legal provisions in force (Panama Court Order required). If a violation of this occurred Article 101 of this Cabinet Decree contains provisions for the dealing of such a violation.

Article 101 of Cabinet Decree 238 states that:

“Any person who furnishes information in violation of this Cabinet Decree, or who violates any of the prohibitions established in it, for which no specific punishment is provided for, shall be subject to a monetary fine as determined by the Banking Commission, without prejudice to applicable criminal and civil liabilities.” This is fairly strong language.

Article 65 of Cabinet Decree 238 deals with how the National Banking Commission may gain access to documents relating to the bank’s operation, not individual records of banking clients. The Banking Commission needs to regulate the banks financially and thus inspect their books but this is mandated to be done on a collective basis, thus the books for the bank as a whole are inspected not the records for an individual account holder at the bank. The Banking Commission may not examine or inspect any type of individual deposit accounts, nor the securities held in custody by the bank for clients, nor the safe deposit boxes belonging to clients and their contents, nor the documents associated with receiving credit from the bank, unless there is a Panama Court Order in place that specifically authorizes such inspection or examination according to Article 89 of the Panama Commercial Code.

Panama statues specify that bank secrecy may be lifted by a Panamanian court through Article 89 of the Commercial Code. This is not a commonly invoked procedure but is possible concerning serious criminal activities.

Articles 168 and 170 of the Panamanian Criminal Code contain two sections which enables criminal prosecution for violation the privacy of Panama banking clients:

Article 168. Any person that is in legitimate possession of correspondence, records or documents which are not intended for public knowledge and notwithstanding discloses said correspondence, records or document without proper authorization, even in the event that they were addressed to him, shall be subject to prosecution, whenever such disclosure might inflict damage.

Article 170. Any person that in the course of his occupation, employment, profession or activity obtains knowledge of confidential information that in the event of being made public could inflict damages, and such person discloses that information without the consent of the concerned party; or in the case that disclosure of such information were not necessary to safeguard a higher interest, shall be punishable by imprisonment of 10 months to 2 years or a comparable fine, and the inability to practice his occupation, employment, profession or activity for not more than 2 years. One can readily discern that this would cover Panama Stock Brokers, and Panama Banks including all the employees and officers. This could also be construed to cover Directors of Panama Anonymous Bearer Share Corporations and Council Members of Anonymous Panama Private Interest Foundations.

Panama has done away with numbered bank accounts as have the rest of the offshore tax haven jurisdictions. This is due to pressure from FATF, the Financial Action Task Force. FATF is a private entity that unofficially dictates anti-money laundering statues to the banks worldwide. Numbered accounts are no longer allowed.

Panama through the use of anonymous Bearer Share Corporations accomplishes practically the same privacy as the old numbered bank account. The banks around the world including those in Panama must know who their customers are. This usually means getting identity documents such as passports, driver’s licenses, national identity cards, and letters of reference from banks and businesses. The Panama Bearer Share Corporation is anonymous in that there is no reporting or recording of any stock ownership records in any registry or database thus it is impossible to determine who the natural persons are behind the corporate veil. This means when international wire transfers are sent only the name of the anonymous corporation appears in the wire, the true owner of the account is not revealed for the world to see same as it was when numbered bank accounts were allowed. With regards to writing checks the same applies assuming the signatory signs the check in a hard to read manner. To provide for more privacy Panama only allows an attorney to form a corporation or foundation. This cloaks the formation of the corporation with Panama attorney client privilege further protecting the owners of the corporation or foundation with an additional layer of privacy. In most tax haven jurisdictions the formation of a corporation handled by a corporate agent which does not provide privileged communication to protect the identity of the person owning the corporation.

One can readily see why Panama has become the new Switzerland of Latin America.

For more information, please visit:

http://www.panamalaw.org

email at: panamalegal@hush.com