Banking Holiday in Panama Announced today

robertc400

robertc400

Well-Known Member
Silver Stacker
By Randy Hilarski

This morning the National Bank of Panama announced that it was suspending all services until Tuesday the 1st of October. The National Bank of Panama says that the reason is to upgrade systems. The Banking Holiday in Panama was announced this am.

This system wide shutdown has country wide implications. The National Bank of Panama did not warn the people before making the announcement and shutting down the banks. The people do not have access to ATM's either. We received word of this from family members first. This weekend is payday for people across Panama.

I am active among the Gold and Silver investing community. We have been discussing at great length about the possibility of bank holidays in countries on the Dollar standard. Could Panama just be the first domino to fall in the banking system? Could this be more than just a system upgrade? Why not tell the people ahead of time to prepare for the closure of the banking system?

What are some reasons for a bank holiday? The National Bank of Panama says it is a system upgrade, I don't believe it is that simple. Maybe a Dollar revaluation could be coming soon. Maybe it is something more serious like a banking crisis like we had in Indonesia back in 1997 or more recently in Cyprus. I am hoping for the best and preparing for the worst.

What are some things you can do to protect yourself if Panama is just the first signal of a pending banking crisis? First and foremost make sure to have some cash. Second buy the essentials for your family. Be frugal until the storm passes. I know this sounds simplistic, but those who are prepared will be fine.

I feel for the Panama families who live paycheck to paycheck. They were expecting to be paid tomorrow. This is the time that they go grocery shopping, put gas in their cars and pay the bills. This delay will have wide ranging affects on the people of Panama.

Do not be unprepared, you have it within your power to be ready for such a situation!
 
Panama is/was considered a banking safe-haven. They had a high level of privacy and wouldn't provide client details to the USA.

Maybe this situation is similar to Cyprus?
 
willrocks said:
Panama is/was considered a banking safe-haven. They had a high level of privacy and wouldn't provide client details to the USA.

Maybe this situation is similar to Cyprus?
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Maybe the 'West' are conducting cyber espionage to steal the info, or warefare to terrorise the safe-haven

Or maybe Big Bird just had THAT much money it crashed the computer because the system cant take that many zeros
 
Just an agnostic query here ok...

I did a google search on "panama bank holiday" and the only article describing it is the article pasted in this thread, there are no other supporting articles.

Can anyone else confirm there is a Panama bank holiday as described?
 
Agnostic said:
I did a google search on "panama bank holiday" and the only article describing it is the article pasted in this thread, there are no other supporting articles.
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The notice is front and center on their own webpage right now.

https://www.banconal.com.pa
El Banco Nacional de Panam informa que el prximo viernes 27 deseptiembre las sucursales en todo el pas estarn abiertas slo hasta las 12:00 medioda. Adems, eI sbado 28 y el lunes 30 de septiembre nuestras sucursales estarn cerradas. Nuestros ATM's, el uso de las tarjetas dbito del Banconal en puntos de ventas y comercios, adems de los servicios de Banca en Linea eInfovoz estarn fuera de servicio el sbado 28 y domingo 29 de septiembre. Estas suspensiones de servicios son necesarias para implementar la Fase ll del proceso de actualizacin de la plataforma tecnolgica de la entidad.

Best translation I can provide:
"The National Bank of Panama reports that on Friday 27 September branches across the country will be open only until 12:00 noon. In addition, EI Saturday 28 and Monday September 30 our locations will be closed. Our ATM's, the use of debit cards in outlets [Bancona?] and businesses, in addition to the Online Banking services and Infovoz will be unavailable on Saturday 28 and Sunday 29 September. These suspensions of services are required to implement the Phase II of the process of updating the technology platform of the company."

"The National Bank of Panama (Spanish: Banco Nacional de Panam) is one of two Panamanian government-owned banks. The other government-owned bank is Caja de Ahorros.
 
No signs of any such notice with other banks domiciled in Panama.

I did some across a interesting product. Caja Mi Colchon "The Savings Bank of Mattress" (http://www.cajamicolchon.com/).

The site is written in Spanish but I think photographs tell the story.
 
OK maybe it is simply a technology upgrade for one bank, rather than a precursor to bail-in?
 
Isn't the Panama balboa linked to Us $.. equal?

Maybe some concern about Us$ in the next week or two?

Regards Errol 43
 
Guys, I don't know if this is related.

I have been working on a project with one of the big4 banks called foreign tax compliance, initiated by the US IRS.

More specifically, the ironic thing is most if not all of the world banks agreed to this and are coming up to speeds with complying. The project involves identifying any person or company opening a bank account with the current bank whether they are US related and will be required to report to the IRS for tax purposes.

The crux of this is that if your bank is deemed not compliant (ie. your system cannot assess, detect and submit to the IRA potential US citizens) by the 1st Oct or 1st Jan 2014. Any US transfers to the bank, the US will withdraw 30% of the transaction until your bank is compliant.

This is why this project I am working on is high profile and at all cost / resources to meet the compliance deadline. Otherwise the bank can close if 30% of transactions are withheld coming from the US.

So, having said all this, those PANAMA banks may behiding US client information from the US IRS. Maybe they are cleaning up their records and coming up to speeds with becoming compliant?

Slam
 
Related to Slam's post above, there's an article on the BBC News website entitled "Goodbye, US Passport", about the increasing numbers of US ex-pats who are renouncing their US citizenship.

A new law called the Foreign Accounts Tax Compliance Act (Fatca) will, from 1 July next year, require all financial institutions around the world to report directly to the US Internal Revenue Service (IRS) all the assets and incomes of any US citizens with $50,000 (31,000) on their books. The US could withhold 30% of dividends and interest payments due to the banks that don't comply.

It's an attempt by the US authorities to recover an estimated $100bn a year in unpaid taxes on US citizens' assets overseas. Unlike other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live.
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Many US ex-pats are finding the cost and complexity of doing their tax return becoming excessive:

"Some people are spending $4,000-$5,000 a year to do their tax return only to find out they don't owe anything to the US."
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As a result, some are choosing to renounce their US citizenship.

Full article: http://www.bbc.co.uk/news/magazine-24135021
 
whinfell said:
the Foreign Accounts Tax Compliance Act (Fatca)
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I was going to mention that. I've seen a few videos by John Stossel and Peter Schiff where where they talk about this matter. The SEC and IRS bully non-US banks into providing information on US citizens with foreign bank accounts so they can be taxed on their overseas incomes by the US, which if they are income taxed in other jurisdictions means US citizens are double taxed.

It's also one of the reasons Peter Schiff publically states for EuroPacific Capital is not open to US citizens. Whether that is true or not I don't know.

Is the USA becoming East Germany? So many people seem to be deserting the socialist workers paradise.
 
AngloSaxon said:
It's also one of the reasons Peter Schiff publically states for EuroPacific Capital is not open to US citizens. Whether that is true or not I don't know.
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I was initially confused by this myself.

There is Euro Pacific Capital (http://www.europac.net/) which IS open to US residents but NOT overseas residents, and Euro Pacific Bank (http://europacbank.com/) which is NOT open to US residents but IS open to overseas residents. They point you in the right direction if you contact them looking to do business with them ;)

Whilst I have not really looked into EP Capital's offerings (as they're unavailable to me), I believe the two organisations have similar products and services for the most part, it's just the reporting requirements and systems are different.
 
Out of curiosity are Australians also taxed on money earned overseas? For example say you move to Thailand or Singapore where there is no captial gains tax, would you still have to pay the ATO as an Australian citizen living overseas permanently but still using an Australian passport to get around?
 
Caput Lupinum said:
Out of curiosity are Australians also taxed on money earned overseas? For example say you move to Thailand or Singapore where there is no captial gains tax, would you still have to pay the ATO as an Australian citizen living overseas permanently but still using an Australian passport to get around?
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No, FATCA is purely initiated by the US IRS and chasing US citizens, and organizations. But then, I wonder if Australia will do the same if they get desperate and need revenue.

Slam
 
Caput Lupinum said:
Out of curiosity are Australians also taxed on money earned overseas? For example say you move to Thailand or Singapore where there is no captial gains tax, would you still have to pay the ATO as an Australian citizen living overseas permanently but still using an Australian passport to get around?
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It depends entirely if you are a considered an Australian resident for tax purposes. If you become a non-resident for tax purposes you will pay non-resident tax rates on any income earned within Australia, but will not be taxed on your overseas income.
 
Slam said:
Caput Lupinum said:
Out of curiosity are Australians also taxed on money earned overseas? For example say you move to Thailand or Singapore where there is no captial gains tax, would you still have to pay the ATO as an Australian citizen living overseas permanently but still using an Australian passport to get around?
Click to expand...

No, FATCA is purely initiated by the US IRS and chasing US citizens, and organizations. But then, I wonder if Australia will do the same if they get desperate and need revenue.

Slam
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From my experience if you pay tax overseas you have to show the ATO your foreign earnings and foreign tax return, they then calculate your income in Australian dollars and if you paid less tax to the foreign government tax department on that income than you would have paid in Australia you owe the difference to the ATO. You don't get double taxed. There are rules that effect this that also depend on how many consecutive days you stayed in the foreign country in that financial year.
 
petey said:
Caput Lupinum said:
Out of curiosity are Australians also taxed on money earned overseas? For example say you move to Thailand or Singapore where there is no captial gains tax, would you still have to pay the ATO as an Australian citizen living overseas permanently but still using an Australian passport to get around?
Click to expand...

It depends entirely if you are a considered an Australian resident for tax purposes. If you become a non-resident for tax purposes you will pay non-resident tax rates on any income earned within Australia, but will not be taxed on your overseas income.
Click to expand...

In addition to petey's point. It also depends whether the asset has ties to Australia. e.g. Australian shares, or Australian real estate both have significant ties to Australia.
 
willrocks said:
petey said:
Caput Lupinum said:
Out of curiosity are Australians also taxed on money earned overseas? For example say you move to Thailand or Singapore where there is no captial gains tax, would you still have to pay the ATO as an Australian citizen living overseas permanently but still using an Australian passport to get around?
Click to expand...

It depends entirely if you are a considered an Australian resident for tax purposes. If you become a non-resident for tax purposes you will pay non-resident tax rates on any income earned within Australia, but will not be taxed on your overseas income.
Click to expand...

In addition to petey's point. It also depends whether the asset has ties to Australia. e.g. Australian shares, or Australian real estate both have significant ties to Australia.
Click to expand...

Yes, keeping investments in Australia while being an Australian citizen and aiming to become a non-resident for tax purposes can be quite challenging.
 
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