In order to conduct the banking business in or from Panama, or for a bank to open a representative office, a banking license  is required to be issued by the Superintendence of Banks (the “Superintendence”).

Types of Banking Licenses in Panama

The Superintendence may issue three types of banking licenses:

1. General License: This license permits the conduct of banking business anywhere in the Republic of  Panama, as well as transactions that are entered into, completed, or take effect abroad, and the performance of any other activities authorized by the Superintendence.
2. International License: This license permits a bank to manage, from an office established in Panama, transactions that are entered into, completed, or take effect abroad, and to carry out such other activities as the Superintendence authorizes.
3. Representative Office License: This license permits foreign banks to establish a representative office in the Republic of Panama and to carry out such other activities as the Superintendence authorizes. Representative offices must always include the term “representative office” in all their dealings.

It should be noted that banks may request a change in the type of license from the Superintendence, in which case the updated documentation on file with the Superintendence will be recognized. In each specific case, the Superintendence will determine the additional requirements that banks must make effective.