How to pay Chinese suppliers from Panama

How to pay a Chinese supplier from Panama: the short answer

A Panamanian company pays a Chinese supplier from its ordinary business account, because the US dollar is Panama's national currency. The US government's Country Commercial Guide for Panama, last published on 27 March 2026, states that there are no foreign exchange controls and no restrictions on capital flows into or out of the country. The bank sends the dollars by SWIFT, the international messaging network banks use for cross-border payments, to the supplier's account in China or Hong Kong.

The usual sequence for an order from China is:

1. Agree the price, the payment terms and the Incoterm with the supplier, and get a proforma invoice. An Incoterm is a standard trade term, such as FOB or CIF, that sets who pays freight and insurance.
2. Give your bank the supplier's full bank details and the invoice, so its compliance review does not hold the payment.
3. Pay the deposit by SWIFT from the company's account, quoting the proforma invoice number.
4. Pay the balance against a copy of the bill of lading, the document the shipping line issues when it receives the goods.
5. Clear the goods with Panamanian customs on a declaration whose value matches the invoice.
6. Keep the payment confirmations with the invoice and customs file for each order.

This guide covers the Panamanian side of each step. For the supplier's side, such as how Chinese factories invoice and why many ask to be paid in Hong Kong, see our general guide on how to pay suppliers in China.

Panama's rules: no exchange controls, strict bank checks

Panama has no exchange regime for an importer to clear. There is no local currency to convert, no exchange declaration and no deadline for using or bringing home dollars in the sources cited here. The rules that do apply come from bank supervision.

Source: International Trade Administration, Panama Country Commercial Guide, Trade Financing (last published 27 March 2026), as published on 29 October 2026.

The absence of exchange controls does not mean the absence of checks. A payment to a new beneficiary in Asia can draw questions from the sending bank's compliance team. Have the proforma invoice, the supplier's registration details and a short description of the goods ready with the first payment to each supplier.

How the money reaches a Chinese supplier

Most Chinese suppliers invoice in US dollars, which suits a Panamanian buyer. Many invoice through a Hong Kong trading company with a Hong Kong bank account. Whichever route you use, pay the company named as seller on the invoice.

Routes as described in this guide; letters of credit from the International Trade Administration; supplier-side checks from PNC Bank, as published on 29 October 2026.

Paying from a Panamanian account

A Panamanian current account is a dollar account, so the bank sends the invoice amount without conversion. The payment travels through the bank's correspondent in the United States, a bank that holds dollars for the Panamanian bank and passes the payment on. Ask the bank three things before the first payment: its fee for an outgoing international transfer, its cut-off time, and which US correspondent it uses.

Paying from a USD account abroad

Because Panama places no restrictions on capital flows, a Panamanian company can also pay suppliers from a USD account abroad held in its own name. This suits a business that collects from buyers in the United States and pays suppliers in Asia, since the dollars can move from receipt to payment without returning to Panama first. The account must be in the name of the company that buys the goods, so the payer on the transfer matches the buyer on the invoice and the customs file.

What the supplier's bank checks

China manages foreign exchange through the State Administration of Foreign Exchange (SAFE). As summarized by PNC Bank, the supplier's bank verifies each receipt against documents such as the contract, invoice and customs declaration, and the remitter and beneficiary must be the parties to the contract. A payment from a company that is not the buyer on the contract can be held while the bank asks questions.

Deposit, balance and payment terms

The payment term decides when dollars leave the company and what you hold in return. Panamanian rules do not set the term, so it is a commercial choice.

Payment terms as commonly used in trade with China; letter of credit availability from the International Trade Administration, as published on 29 October 2026.

A letter of credit (LC) is a bank's written promise to pay the seller when it presents documents that comply with the credit's terms. An irrevocable LC cannot be changed or cancelled without the agreement of the parties. A documentary collection sends the shipping documents through the banks, and you receive them only after you pay or accept a bill of exchange. A supplier that has not traded with you before may ask for an LC on the first order and accept deposit and balance on later orders.

What it costs: published bank charges

Each Panamanian bank publishes its own tariff. The table shows BAC Panamá's published charges for outgoing international transfers, as an example of the items to budget for on each order. Amounts are in balboas (B/.), as published, and the 7% ITBMS, Panama's tax on goods and services, is added.

Source: BAC Panamá, Tarifario de transacciones internacionales, updated 15 July 2026, as published on 29 October 2026. ITBMS of 7% is excluded. The tariff also lists flat digital and manual charges; confirm which apply to your account.

On a US$40,000 order paid online as a US$12,000 deposit and a US$28,000 balance, 1% of each payment is above the B/.100 maximum, so each transfer costs B/.100. With the SWIFT and compliance commissions, each payment comes to B/.125, or B/.250 for the order, plus B/.17.50 of ITBMS. Sent from a branch, the same two payments would cost B/.120 and B/.280 before the other commissions. The tariff does not say whether the B/.40 for costs to the beneficiary or originator is the charge for sending under OUR, so ask the bank before you choose the charge option.

Send SWIFT payments with the charge code OUR, which means you pay all transfer fees and the supplier receives the full invoice amount. SHA shares the fees, so intermediary deductions come out of the amount. BEN puts all fees on the supplier. A payment that arrives short delays shipment while the supplier queries the gap.

Documents that tie the payment to the goods

The bank, customs and the supplier's bank each match the same facts: the buyer, the supplier, the invoice and the value. Keep them identical across every document.

Company file from Biz Latin Hub's guide to opening a corporate bank account in Panama (updated 29 December 2025). Typical sequence; requirements vary by bank and product. As published on 29 October 2026.

The MT103 is the standard SWIFT message for a customer transfer and is the supplier's proof that the money left your bank. Panamanian banks ask for documents issued abroad to carry an apostille, the certificate that makes a public document from one country valid in another, so keep the company file current before a large order.

Many Panamanian businesses re-export goods to other countries in the region. When the buyer of the goods abroad pays you in dollars, keep that collection and the supplier payment on the same order file, so the bank can see the whole trade.

Agents, crypto and other routes: the facts

Some importers pay through an agent who settles with the supplier abroad, or through a stablecoin seller. Panama's open rules do not make these routes simpler, for the reasons below.

• The supplier's bank expects the buyer to pay. Under China's rules, as summarized by PNC Bank, the remitter and beneficiary must be the contract parties.
• Banks review where funds come from. The SBP enforces the anti-money laundering and know-your-customer regime, and a business whose records show payments to agents rather than suppliers draws more questions.
• No crypto law is in force. Panama's Supreme Court declared the whole crypto-asset bill, Bill 697 of 2021, unconstitutional in a ruling dated 6 June 2023, on procedural grounds.
• Neither regulated nor prohibited. A June 2025 analysis by Ricardo Chanis, published by LexLatin, states that no specific law regulates crypto use in Panama and that there is no prohibition either. It reports that some banks let clients receive crypto payments and convert them to US dollars.
• A stablecoin balance is not a bank deposit. USDC and USDT are crypto assets designed to track the US dollar, held with a provider. Check that your bank will accept funds converted from stablecoins before you rely on that route.

Where Helm fits

Helm is a financial technology company, not a bank. Accounts are held with regulated partner institutions. Helm serves companies registered in Panama. A Helm account gives your company USD account details in its own name, with a US routing and account number that receives ACH, Fedwire and SWIFT payments.

For a Panamanian business that buys from China, it works like this:

• Pay suppliers in USD. Send international payments by SWIFT from your company's own account to the supplier's USD account in China or Hong Kong, with the rate, fee and expected arrival shown before you send.
• Collect and pay from one account. Dollars from buyers in the United States and elsewhere can be received by ACH, Fedwire or SWIFT and used to pay suppliers.
• Other currencies. EUR details (IBAN, SEPA and SWIFT) and GBP details (sort code, Faster Payments and SWIFT) sit alongside the USD details, for suppliers and buyers in Europe and the UK.
• Stablecoins. The account can receive USDC or USDT and convert them to USD, so a supplier payment still goes out as a dollar transfer from your company's account.
• Finance the order. Trade finance, such as supplier finance and working capital, is arranged case by case.

Each account has a named account manager, and review questions are answered in writing within one business day. Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment.

A checklist for paying a Chinese supplier from Panama

• Ask your bank for its outgoing transfer fee, cut-off time and US correspondent before the first payment.
• Send the first payment to a new supplier with the proforma invoice and the supplier's details, so the compliance review does not hold it.
• Pay from the company that is the buyer, to the seller named on the invoice.
• Send each payment by SWIFT with charges set to OUR, quoting the invoice number.
• Pay the balance against a copy of the bill of lading, or use a letter of credit for a new supplier.
• Use online banking where your bank's published fee is lower than at a branch.
• Keep the company file current, with apostilles on documents issued abroad.
• File each MT103 with the invoice and customs declaration for the order.

For how other importers organize supplier payments, see the importers page.

Questions

References

1. International Trade Administration: Panama Country Commercial Guide, Trade Financing
2. BAC Panamá: Tarifario de transacciones internacionales (updated 15 July 2026)
3. Biz Latin Hub: A Guide to Opening a Corporate Bank Account in Panama
4. La Prensa: La Corte Suprema rechaza el proyecto sobre criptoactivos, es inexequible (16 July 2023)
5. LexLatin (Ricardo Chanis): La regulación de criptomonedas en Panamá (6 June 2025)
6. PNC Bank: Navigating China's regulations on foreign exchange for goods trade

This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.