Multi-Level Asset Protection 

Although Panama is home to the anonymous bearer share corporation, in itself, a Panama bearer share corporation is not the strongest asset protection strategy available.  Any good asset protection plan includes multiple layers for privacy.  The Panama corporation owned by a foundation is a strong combination, which combines the power of the Panama Private Interest Foundation (or just foundation for short) with the Panama bearer share corporation.

Can an attacker see my assets in Panama?

This all depends on how your asset protection structure is setup.  Attention to detail when setting up an asset protection structure can mean the difference between its success and  failure.  Sadly many "offshore corporation mills" and law firms seem to be unaware of these very important details.  The result has been many sad calls to our law firm asking for help.  The good news is that if you are reading this article, you are likely contemplating an offshore protection plan, and you can avoid the mistakes others have made. 

Advance Warning

The concept of advance warning is dependent on the offshore corporation being registered so that it is impossible to tell that it is actually owned by a foundation.  When utilizing this structure, all money transactions should be done with the corporation.  Regularly the money from the corporation should be swept into the foundation's bank account.  If an attack comes, it will be against the corporation, since the attacker can not know about the foundation (where your assets are really kept) unless you have told them yourself.

Botched Asset Protection

Sadly, setting up an offshore company owned by a Panama foundation can be easily botched.  Most "Offshore Company Mills" and even many law firms here in Panama don't really understand how to set this asset protection vehicle up properly.  If done properly, any lawsuit or other attack against your offshore structure will only serve as an advance warning, giving you time to take action. If setup incorrectly, you may wake up one morning to discover your bank account has been frozen.  If setup correctly, it is impossible for an attacker to know that the foundation has any relationship with corporation they are attacking.  Why is this important?  Simple.  If the attacker knows about the foundation, he or she will simply name it in the lawsuit and if their evidence is convincing enough  a judge may issue an order to freeze your accounts pending the outcome of a trial.  (Although it is rare for a judge in Panama to do this when the attacker comes from outside Panama.)  All of your asset protection plans would be rendered useless.  With a small amount of effort, this writer is able to determine that a particular corporation is owned by a foundation, and the name of that foundation.  People can and do hire this writer to find such associations when they are investigating a corporation.  The good news is that we are one of the few law firms who know how to setup this structure without any association between the company and foundation. 

Eliminating External Transfer Records and an Unofficial Freeze of your Bank Account

Both the foundation and the corporation should have their accounts at the same bank.  This way the money can be swept from one account to the other via an internal bank transfer and no external records to the bank are made. 

To add an additional layer of safety, the foundation needs to have another bank account at a different bank.  Why?  This is where dealing with a law firm with experience in asset protection comes into play.  In the unlikely, but possible circumstance, where a Panama court issues a freeze order for the corporate bank account an overzealous bank manager may put an unofficial freeze on the foundation's bank account  since he is aware of the association.   The unofficial (and illegal) freeze comes in the form of delays in the form of questions like, "Could you please provide source of funds documentation for all transactions in the past 2 years?"  No money will move in or out of your account until you have provided this documentation.  Essentially your account is frozen.

To p