Panama's BAC International Bank faces scrutiny over $42 million fraudulent tax credit scheme

Panama’s banking regulator, the Superintendencia de Bancos (SBP), confirmed that BAC International Bank Inc. remains liquid and solvent, with indicators well above legal minimums. The SBP warned that disseminating false information that threatens the national economy could be penalised under article 260 of the Penal Code.

An internal audit by the Dirección General de Ingresos (DGI) uncovered $42.4 million in tax credits used by BAC, of which about $36.01 million were deemed improper or illegitimate. The audit linked the credits to the e‑Tax 2.0 fraud scandal that involved fictitious fiscal credits created by DGI officials and transferred through an intermediary company and an insurer. Seventeen individuals have been charged, with fourteen placed in provisional detention and three subject to domicile seizures.

BAC maintains it acquired the credits in good faith. The Cámara de Comercio e Industrias de Panamá (CCIAP) expressed concern that the scandal undermines the credibility of the tax authority, jeopardising legal certainty, investment confidence and the overall institutional integrity of Panama’s fiscal system.