U.S. reforms may disrupt Panama investment

(newsroompanama.com) Financial reforms in the United States could disrupt credit markets and investment in Panama, according to local industry officials. Raul Guizado, vice president of Security and Compliance with Banco General, said that the new regulations imposed certain restrictions on foreign financial institutions that have U.S. clients. He was speaking at the 19th National Banking Convention.

Foreign banks with U.S.account holders have to retain 30 percent of all outgoing capital and report these transactions to the U.S. Internal Revenue Service. Guizado said that Banco General's lawyers have said that if the 30 percent is not retained, the bank will be forced to provide detailed information about the holders of the accounts.

Metrobank Vice President of Operations Rolando de Leon warned that the impact of this regulation is that it could be used as a model for other countries. He recommended that local regulators take into account the differences between the U.S. and Panamanian banking systems before proposing any similar reforms here.

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Original Source:http://www.newsroompanama.com/business/1470-us-reforms-may-disrupt-panama-investment.html
Date Retrieved: July 23, 2010.