A central part of that long tax haven tradition has been statutory guarantees of financial privacy and confidentiality. Violators can suffer civil and criminal penalties. There is no requirement to reveal beneficial trust or corporate ownership to Panama authorities. Bearer shares are permitted. And Panama has no double-taxation agreements and no tax information exchange agreements with other countries. While "dollarization" is debated as a novel concept elsewhere in Latin America, the U.S. dollar has been Panama's official paper currency since 1904. (The local equivalent is the balboa, and there are Panamanian coins that circulate along with U.S. coins). 

Panama has no central bank to print money, and, as Juan Luis Moreno-Villalaz, an economic adviser to Panama's Ministry of Economy and Finance, recently noted, "In Panama...there has never been a systemic banking crisis. Indeed, in several instances, international banks have acted as the system's lender of last resort. The Panamanian system provides low interest rates, less than 8% on mortgages and commercial loans. Credit is ample, with 30-year mortgages readily available. These are unusual conditions for a developing country and are largely achieved because there is no exchange-rate risk, a low risk of financial crises, and ample flow of funds from abroad."

Panama grew as an international financial center after enactment of Decree No. 238 in July 1970, a liberal banking law that also abolished currency controls. The law exempts offshore business in Panama from income tax and from taxes on interest earned from domestic savings accounts and offshore transactions. Since February 1999 a new comprehensive Banking Law has been in place, which could prove to be the legal structure that will confirm Panama as a leading world offshore finance center. Panama's growing financial sector also includes its active Stock Exchange, captive insurance and re-insurance companies, and financial and leasing companies. At the Atlantic end of the Canal is the Colon Free Zone, a tax-free transshipment facility for world trade. However suspect it may have been in the past, Panama is fast becoming one of the world's major financial crossroads. Base your business there and you're connected everywhere!

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Modern Maturity (the largest consumer magazine in the world, with more than 20 million readers) rated Boquete Panama first-best retirement destination in the western hemisphere, number four in the world, following such developed favorites as the Costa del Sol in Spain, Cinque Terre in Italy, and Provence, France. As the article reported: "If you love tropical lushness and don't need big-city stimulation, this lively little community near the Costa Rican border may be calling your name. The town's European and American ex-pats appreciate the stable political scene, the mercifully modest cost of living (you'll need about 25% less to live here than in a suburb in a medium-size U.S. city), the clean air, and the outdoorsy activities: river rafting, tennis and golf. Boquete is tucked into a fertile landscape of coffee plantations and orange groves where you can escape the heat of the lowlands." 

"Panama is an undiscovered tourist paradise," The Boston Globe 

"Panama is the most beautiful retreat in the world and almost undiscovered," claimed a recent article in Harper's Bazaar.

"Known mostly for its canal, Panama is, in fact, an undiscovered tourist paradise," stated a recent travel article in the Boston Globe.

National Geographic has also included long travel articles this year praising the undiscovered delights Panama has to offer. 

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