Panama uses the US dollar, runs on Eastern-adjacent time, and has spent two decades marketing itself to American retirees through the Pensionado visa. Its financial sector is sophisticated and international — which cuts both ways. Boquete and Coronado expats are pitched by Panamanian private banks, offshore structures, and US advisors alike, and it is not always obvious which regulator, if any, stands behind a given product.
What goes wrong in Panama
Three patterns we see from Panama.
- 01
Which regulator?
Before anything else: was the person who sold you the investment a FINRA-registered representative of a US firm? If so, FINRA arbitration is available and the firm is responsible for supervising that representative. If the seller was a Panamanian bank or an unregistered “wealth manager,” the path is different. We check this for free.
- 02
Concentration in a single idea
Panama attracts investors with conviction — in real estate, in a sector, in one company. A broker who lets a retiree’s entire account ride on one position, or who recommends the concentration, has a failure-to-diversify problem when it goes wrong.
- 03
Annuities and insurance wrappers
Variable annuities and insurance-wrapped portfolios are sold aggressively to Americans abroad because the commissions are large and the surrender periods are long. A 70-year-old sold a product with a ten-year surrender schedule has a suitability claim worth examining.
Working with Birmingham from Panama
Your hours, not ours.
Panama is on Eastern Standard Time year-round — one hour ahead of Birmingham in winter, the same hour in summer. FINRA arbitration is a document-driven, national forum. Your claim is filed electronically, discovery is exchanged electronically, and hearings are routinely conducted by video. Richard Frankowski has represented investors in FINRA arbitration from his Birmingham office for over twenty-five years — most of them people he first met by phone.
Panama
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The claims behind the patterns
Each pattern is a recognized FINRA claim.
- 01 “They found out I moved, and now my account is frozen.”
- 02 “I needed income and safety. He sold me something I couldn’t sell.”
- 03 “I was twelve hours away, and the trading never stopped.”
- 04 “I rolled over everything the month I retired. That was the mistake they were waiting for.”
- 05 “He said he specialized in Americans abroad. I never checked who regulated him.”
Guides
Guides for Americans in Panama
- Can I Keep My IRA or 401(k) If I Move Abroad? Yes — Mostly You can generally keep an IRA or 401(k) after moving abroad. What changes is who will hold it — and what brokers get wrong about rollovers and cashing out. 7 min read
- How to Read Your Brokerage Statements for Churning Turnover ratio, cost-to-equity, and confirmations you never approved: a plain guide to finding unauthorized trading and churning in your statements. 8 min read
- Variable Annuities Sold to Retirees Abroad: What to Know Surrender charges, layered fees, oversold riders, and annuities inside IRAs: how variable annuity claims work for American retirees abroad. 7 min read
- The Retirement Rollover Checklist Before You Move Abroad Before you roll a 401(k), TSP, or pension into an IRA and leave the country: what Regulation Best Interest requires, and the questions to ask in writing. 7 min read
- Selling Away: When a Side Deal Is the Firm’s Problem Your broker sold you something that never appeared on a statement. FINRA Rules 3280 and 3110 explain when the brokerage firm is responsible anyway. 7 min read
I hold investments through a Panamanian private bank. Is that a US case?
Usually not, unless a US-registered broker or affiliate was involved in the recommendation. We will review the documents and tell you honestly which forum, if any, applies.
Does Panama’s dollar economy matter to my claim?
Not to the merits. It does simplify damages, since there is no currency conversion argument to fight about.