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In 2014, essentially all the financial institutions operating in Panama will be required to submit information to the United States (IRS) authorities, concerning “American citizen” in Panama.

Foreign Accomplice Account Tax Act (FATCA) require foreign countries financial institutions to increase the human resources and deploy modern technology platforms, to provide almost automatically taxpayers financial information report to the USA governments.

What happen if Panama refused to sign FATCA?

If, Panama refuses to sign this agreement United States would obstruct them to use their financial services.

Consequently, the financial institutions and banks are asking American citizens, fill out a special form that requires the taxpayer to provide very detailed information on their financial activities. Panamanian banks and financial institutions must be focused on over a million dollar accounts.

Who is considered a ‘ U.S. Person ‘ for FATCA?

“USA Person” may be a USA citizen or resident foreign country, including individuals with parents born in the USA, with double nationality and who live outside the USA. and do not intend to live there, an individual with legal residence in the USA ( green card ), individuals born in the USA and people who have been present in the U.S. for six months in the past three years .

Although the moment to put into 100% operation FATCA in Panama have been postponed several times until obtain an intergovernmental understanding, in order to standardize the process and prevent financial companies require to perform this individually, governments attempt to allow Financial Center prepared with the technology platform and train their employees, to accomplish FATCA requirements.

However, FATCA is already in Panama!