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I have direct merchant account solutions in Panama. I don't recommend them except as banks of last resort. There has been a previous history of merchant bank program closures that make me nervous about putting clients there.
In order to provide merchant services, my clients have to establish a Panamanian corporation. This requires at least one (1) director who is the beneficial owner of the corporation (usually the U.S. owner) and then two (2) local nominees who establish the residency requirement.
My understanding, based on several visits, is that Panama has no local currency and its economy is entirely based on the US Dollar. Therefore all accounts are US dollar accounts.
I've seen many dodges going out of Panama, including the Panamanian corporation paying a US "shell" of the owner for consulting services (I believe that's how the Girls Gone Wild guy got in trouble).
If you're doing business in Panama the corporation is a must have, but better to just consult a tax attorney and pay the minimum you have to to stay legal.
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