FATCA Law

I think if you have an existing account usually you would have no problem as long as you are  not depositing earned Panama income to your back account.

No bank accounts in Panama. It is not necessary to have a Panamanian bank account, We just use the U.S. Bank ATM cards to get cash and the U.S. Credit and Debit cards to purchase what we want at places where they take the cards, which everyone but the smallest stores do. Our U.S. Banks rebate the ATM fees, charge no foreign transaction fees and charge no fees for the accounts or the Credit/Debit cards. FACTA has no effect for us.

We just opened our second bank account here in Boquete with Banco General, had all the correct paperwork, and yes there is 2-3 pieces of papers you have to sign as the banks must comply with the FACTA rules. Not a big deal though, there is a lot of paperwork. Got the account opened in less then 2 hours. Compared to Multi Bank it was a piece of cake.
Having a Panama bank account is convenient for us as homeowners dealing with vendors doing up grades to our house. Easy to write a local check then go to an ATM and have to get cash all the time and then there is the security factor of carrying all that cash around.

Through an Inter-Governmental Agreement (IGA), Panama committed its banks to FATCA compliance and reporting, however, that was the easy part.  The burdensome compliance comes next year and it will be possible that some banks will restrict American accounts due to burdensome nature and risks associated with compliance.  Banistmo, for example, is not yet reporting as required by FATCA.  (FYI, Canada enacted it's own "FATCA" equivalent for its citizens.)  So, I think it is possible that some banks will decide to not handle expat accounts or at least small balance accounts.

The intent of FATCA laws, as I see it, is to prevent/control money laundering and overseas hiding of assets.  We've had no problems with our accounts in Global Bank here in Panama.  There was a sizable amount of paperwork required in setting them up but well worthwhile for the convenience in dealing with local merchants, workers and utility companies.  Since we are back in the US nearly half the year, monthly online bank transactions via the internet are a lifesaver... just as easy as back home.