How to Send Money to Panama: A Complete Guide

Transfer Money to Panama

Many ways exist to transact funds from or to Panama, each with some pros and cons. Evaluating the different options to manage your finances efficiently is essential.

This comprehensive article guides you on the different methods to wire money to Panama.

Currency in Panama

The money in Panama is the Panamanian Balboa (PAB), which is equal to the US dollar. People also consider the US dollar the official currency in the country. While US dollars circulate freely, people also use Balboa coins.

Exchanging Money in Panama

Currency Exchange Services

If you come from the United States or manage US dollars, you will not need exchange services.

For other currencies instead, exchange services are available at banks and airports, in currency exchange offices. The rates in these offices are high, especially the ones at the airports.

ATMs

Many delivery methods exist, but you can always withdraw USD directly from ATMs in Panama. Many ATMs exist in urban areas and shopping centres. Be mindful of transfer fees, both from the ATM provider and your bank.

How to Send Money to Panama

Online Money Transfer Services

Wise, Western Union, MoneyGram, and PayPal are companies that let you send and receive money worldwide. Such services are often faster and cost less than traditional international bank transfers for wire money to Panama.

They give you the possibility to transfer money to a bank account, or for cash withdrawal.

Western Union in Panama

Western Union has many offices across the country. It serves both small and large cities, making it a good choice for residents and expats alike.

How It Works: You can send money online using the Western Union website or the WU mobile app. You can also transfer cash at any Western Union branch in Panama. Choosing the amount for your recipient is easy. You can deliver it to a recipient’s bank account or pick up cash at one of the Western Union offices.
Fees and Processing Time: Western Union processes money transfers in just a few minutes. Charges may vary based on the transfer amount, destination country, and payment method (bank transfer or cash). Western Union is often faster than bank money transfers. However, it is important to check the rates as in some cases, the fees can be higher for larger amounts.
Cash Pickup: If you’re accepting cash, you can pick up your money at any Western Union office in the isthmus. You need to go to the pickup location with a valid photo ID and a transaction code that the sender issued. You can find Western Union offices throughout Panama, including in the capital, Panama City, and towns like Boquete, David, and Colon.
Western Union in Colon: There are several Western Union offices in Colon. To find the exact location, visit the official website.

International Bank Wire

Traditional bank transfers provide a very secure method of payment to send or receive funds to this Central American nation; however, they are normally costly and accompanied by unfavourable exchange rates. Banks charge a fee whose average is between 3% and 5% of the actual amount. The payment can take between 1-5 business days depending on the financial institution. This method is relatively slower and more expensive than other methods; however, it’s a reliable and secure mode of sending money for larger deals.

A More Efficient Option to transfer money from the USA to Panama

If you are an American citizen or you have an American bank account, there is a cheap way to wire money. From a US bank or credit union, you can deposit a check directly into a Panama bank account.

Almost all Panamanian banks permit a maximum amount of $3,000 per account per month by check; it takes 5-7 business days to process. They offer this service free of charge.

Cryptocurrency Transfers

Cryptocurrencies such as Bitcoin provide an alternative way of sending money internationally. This can work efficiently and cost-effectively, but it is crucial to consider the associated risks and the regulations involved in this kind of transfer.

Crypto-friendly Bank in Panama

In Panama, crypto regulation is still in process. Banks are not willing to accept transfers from crypto platforms or derived from crypto transactions, and in most cases, they will freeze your bank account. The only bank that allows you to make crypto activities is Towerbank, a Panamanian financial institution with more than 40 years of banking experience. Towerbank permits you to transfer money from the most common crypto exchanges like Binance and Coinbase.

Considerations and Tips

Update for Veterans: If you are a US veteran, you can get your military payments made directly to your Panama bank account. This is possible at the Federal Benefits Unit at the US Embassy in Panama City and normally takes 1-2 months to be processed.
Know the Fees: Always understand the fees you will pay. This applies when you exchange currency or send and receive money internationally. Fees can significantly affect the amount received on the other end.
Understand Exchange Rates: When converting money to or from other currencies, pay attention to the exchange rates. Comparing a few options is worth it to find the best deal for your specific needs.
Regulatory Compliance: Panama has stringent anti-money laundering (AML) laws. Large transactions may require additional documentation to comply with AML regulations and bank policies.
Plan for Delays: International transfers can take anywhere from a few hours to several business days. Plan accordingly, especially for time-sensitive payments.

Sources & Footnotes

[1] Legal Work Panama - How to Exchange Money in Panama
[2] GlobalBanks - Best Way to Transfer Money to Panama
[3] Banco Nacional de Panamá - Historical Evolution
[4] Wikipedia - National Bank of Panama
[5] Wikipedia - Grupo Banistmo
[6] Wikipedia - BAC Credomatic (Spanish)
[7] Citigroup - About Us
[8] Wikipedia - Citibank
[9] Popular Bank Panama - About Us
[10] OCDE - Tax transparency and international cooperation
[11] Cointelegraph - Bitcoin-Friendly Top 30 Panama Bank