Would you deposit 200K USD in a Panama bank to get temp res and then use that bank for cashing out crypto?

[WorldCitizen99]

Requirements
-leave in for 3 years

Benefits
Can get PR after 2 years

Cons
No depositor's insurance. According to a website I read, you would get 10K for sure and then whatever was left from liquidation.

 

[Sols]

This is a personal choice. If you're uncomfortable parting with 200,000, now might not be the right time to make this type of deposit/investment.

Deposit insurance is nice but the actual financial health of the bank and of the country or countries the bank is exposed to are more important. If you bank where large corporations, international organizations, and the local government bank, then the bank might be "Too Big To Fail" or of "systemic importance."

The history of international banking Panama, which really kicked off in the 1980s, has been a tumultuous at times. However, in recent history (the 2000s), the failures (that I can think of) have mainly been smaller banks. If you don't want to pore over financial statements and draw your own conclusions, the lesson from history seems to be to stick to the major banks. Then chances are your money will come out unscathed the other end. Today, the problems with Panamanian banking have more to do with the country's reputation as a tax evasion and money laundering hub, following the Panama Papers. Expect extra scrutiny for moving larger sums in and out of the country.

What percentage of your net worth is it? Is that a percentage you can live comfortably without for three years? In a nightmare scenario, is a loss 200,000 USD worth the benefits you'd get by being a permanent resident of Panama?

 

[JackAlabama]

Requirements
-leave in for 3 years

Benefits
Can get PR after 2 years

Cons
No depositor's insurance. According to a website I read, you would get 10K for sure and then whatever was left from liquidation.

no, unless im so rich 200k is less than 1 night of bubbly water at the club.
Panama has many other programs for residency, you can also go the business route.

 

[WorldCitizen99]

This is a personal choice. If you're uncomfortable parting with 200,000, now might not be the right time to make this type of deposit/investment.

Deposit insurance is nice but the actual financial health of the bank and of the country or countries the bank is exposed to are more important. If you bank where large corporations, international organizations, and the local government bank, then the bank might be "Too Big To Fail" or of "systemic importance."

The history of international banking Panama, which really kicked off in the 1980s, has been a tumultuous at times. However, in recent history (the 2000s), the failures (that I can think of) have mainly been smaller banks. If you don't want to pore over financial statements and draw your own conclusions, the lesson from history seems to be to stick to the major banks. Then chances are your money will come out unscathed the other end. Today, the problems with Panamanian banking have more to do with the country's reputation as a tax evasion and money laundering hub, following the Panama Papers. Expect extra scrutiny for moving larger sums in and out of the country.

What percentage of your net worth is it? Is that a percentage you can live comfortably without for three years? In a nightmare scenario, is a loss 200,000 USD worth the benefits you'd get by being a permanent resident of Panama?

Thank u for that comprehensive answer
Part of it is that collecting PR's has become my favourite hobby
But there is also the idea that it would be one more option for cashing out cryptos when the time comes.
I'm aware of Towerbank and its marketing as a crypto-friendly bank but I don't know much beyond that.
As far as big int'l banks - Santander, Citi and Scotia are in the top 10 list of GlobalBanks which is a source I respect.
200K WOULD hurt to lose at the moment.
Since there is no advantage as far as banking goes between TR and PR, I guess I'll push it off until I hit it big from my crypto gains hopefully in the next 12 months, since there is nothing to be gained by getting the PR sooner - i.e. I don't think having PR would help in meeting compliance requirements for cashing out

 

[WorldCitizen99]

no, unless im so rich 200k is less than 1 night of bubbly water at the club.
Panama has many other programs for residency, you can also go the business route.

It's a good point Jack but I've been looking for 'easy' routes to get residency.
I've never run a business and I don't really have any good ideas to be honest
e.g. I'm also looking at Phils SRRV 20K USD option

 

[bountymounty]

Why Panama if so ?

It's a good point Jack but I've been looking for 'easy' routes to get residency.
I've never run a business and I don't really have any good ideas to be honest
e.g. I'm also looking at Phils SRRV 20K USD option

 

[WorldCitizen99]

Why Panama if so ?

Bc it's shown up on lists of places to bank and cash out where you can get PR with no physical presence

 

[daniels27]

Bc it's shown up on lists of places to bank and cash out where you can get PR with no physical presence

There are probably 150 other countries where you can do the same without being suspicious.

 

[WorldCitizen99]

There are probably 150 other countries where you can do the same without being suspicious.

Are you talking about 150 countries where you can get a bank acct as a non-resident and cash out, or where you can get residency with a simple bank deposit and no phys pres req's?

 

[JackAlabama]

It's a good point Jack but I've been looking for 'easy' routes to get residency.
I've never run a business and I don't really have any good ideas to be honest
e.g. I'm also looking at Phils SRRV 20K USD option

well its not that hard to run a business, you will find lawyers helping you out.
Other reason is getting a job, that should still work but you wont find these options online.