Choosing an offshore jurisdiction in today's offshore banking world can be difficult. Often the choice comes down to Switzerland and Panama when you are looking for a place to protect your assets. Although Switzerland was once the offshore asset protection capital of the world, it has caved in to pressure from the US and other countries. Switzerland now regularly co-operates with tax authorities from other countries under myriad of tax treaties. It also co-operates with tax evasion investigations. Bank secrecy in Switzerland is all but gone. Panama, however, having no tax treaties, does not co-operate with any other countries inquiries. Panama does not consider tax evasion a crime and as such does not help other countries in their investigations. This includes MLAT requests. Swiss banks have large minimum deposit requirements. A well established bank in Switzerland requires a minimum balance of $250,000 USD. There are some smaller banks with minimum deposit amounts of $10,000 USD. Their goal is to avoid all clients that do not have significant wealth. It makes little sense to Panama bankers who welcome everyone. Panama is not "snooty" like Switzerland. Financial institutions in Switzerland are particular about how you operate your bank account. If you deposit a large sum of money and then withdraw money each month, showing an overall declining balance you will be asked to leave the bank after a few months. Bankers in Panama do not have a problem with a declining balance. Swiss banks are stable and well respected, but it comes at a price. In fact a Swiss bank require US citizens to provide their social security number! Such a requirement make bank secrecy almost a joke. Banks in Panama, on the other hand, have no such requirement. The Swiss banks, under Swiss law, must exchange tax information freely, under their many tax treaties (including a USA - Swiss Tax Treaty). Sadly, this has caused the demise of the once world famous Swiss bank secrecy. Today Panama is the new Country of choice when it comes to asset protection and bank secrecy. Panama does not co-operate with any countries and has no tax treaties. Only in severe criminal investigations is bank secrecy lifted. Panama doesn't recognize tax evasion as a crime, since it is not a crime in Panama. Switzerland banks have huge sums of money under management. To the average depositor, interested in protecting their hard earned assets, this can be an attraction. On the other hand, as people become educated they realize that Swiss bank secrecy is now an artifact of the past. Panama is the fastest growing offshore jurisdiction, with large well established banks, ready to protect your assets.
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