Panama Banking Regulator Says Banks Have a Real Presence Here and Are Not Just Shells

The Superintendent of Banks, Milton Ayón, stated that Panama “has always been a banking center with substance” and not a “sham” market, highlighting that the new law on economic substance can contribute to improving the country’s international perception and strengthening its position as a regional financial hub.

The approval and enactment of Law 526, which reforms the Tax Code and incorporates new rules of economic substance for certain passive income from foreign sources, will further improve Panama’s international financial reputation, said the Superintendent of Banks of Panama, Milton Ayón Wong.  Ayón defended the Panamanian banking center and maintained that it has always operated with a real presence and not as a place of “plate” entities.