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In the News from Panama

Panama Receives Transparency Upgrade from OECD

The Panama government’s efforts to meet international financial standards received a boost this week from the Global Forum of the Organization for Economic Cooperation and Development (OECD).

After a “fast track” review of Panama’s financial structure and latest actions, the OECD upgraded Panama’s transparency rating and proclaimed the country “largely compliant” with international standards.

The move marks the latest step in efforts to convince the international financial community that modern Panama is nothing like the old Panama. Government officials requested the fast track review in March, “as the previous evaluation was based on out-dated legal frameworks and had failed to take into account the country’s new regulatory developments as well as policy decisions,” Panama’s Ministry of Economy and Finance said in a statement.

Panama ratified “in record time” the Convention of Mutual Administrative Assistance (MAC), which “allows for exchange of tax information with over 100 jurisdictions, one of the key requirements to obtain a positive evaluation by the Global Forum.”

The decision by the OECD has many implications in the financial communities, in addition to sending a clear signal that Panama is working diligently to comply with international regulars and banish old perceptions. The latest upgrade means Panama “will not be blacklisted by the G20 in their upcoming meeting,” the ministry says.

“This is great news to us,” said Minister of Economy and Finance Dulcidio De La Guardia. “It is a testament to all of our hard work to fight against tax evasion and to meet international expectations and standards regarding transparency, which have been ongoing from day one of the Varela administration.”

The OECD is recognizing Panama’s “commitment to meet international standards,” the ministry said.