What law creates PIFs?
Private Interest Foundations are set up under Panam Law 25 of 1995. You can find an English-language copy of Panamanian Law 25 of 1995 by clicking on the link. Question # 3: How does a PIF work? A Private Interest Foundation works like a hybrid (a crossbreed) between a Corporation and a Trust. A PIF is like a Corporation because a PIF can live forever, like a Corporation. A PIF is governed by a Foundation Council. The Council takes the place of a Board of Directors for a Corporation. A PIF is like a Trust in that all of the assets held by the PIF are being held on behalf private parties, in their private interest. No public oversight is authorized.
