OECD, IMF Watch: Transparency report, Peru consultation

Panama now has a provisional "largely compliant" rating with regard to the level of implementation of some international tax transparency standards, the OECD said in a statement.

The news comes ahead of July's G20 summit, when the OECD is scheduled to present a list of non-compliant countries.

"This excellent news is a reflection of the policy of fiscal transparency promoted by the government of President Juan Carlos Varela and driven forward jointly by the ministry of foreign affairs and the ministry of economy and finance," Publio Cortés, Panama's director general of revenue, said.

The OECD reported that only one nation, Trinidad and Tobago, remains on this tax transparency black list.

Since the Panama Papers scandal erupted last year, Panama has focused heavily on shedding its reputation as a hotspot for money laundering and tax avoidance. The scandal centered on the leak of 11.5mn secret files from Panamanian law firm Mossack Fonseca, which connected 140 politicians from more than 50 countries with offshore companies in tax havens.

G20 countries had last year asked the OECD's Global Forum on Transparency and Exchange of Information for Tax Purposes – which works to help tackle tax evasion – to "devise objective criteria to identify jurisdictions that have not made sufficient progress toward a satisfactory level of implementation of the agreed international standards." These standards include those on Exchange of Information on Request (EOIR) and Automatic Exchange of Information (AEOI).

Fifteen jurisdictions which previously had a less than satisfactory rating on their peer reviews against the EOIR standard were evaluated to assess whether recent progress would upgrade their rating if they were to be reviewed again, the OECD said.

LARGELY COMPLIANT

Andorra, Antigua and Barbuda, Costa Rica, Dominica, the Dominican Republic, Guatemala, the Federated States of Micronesia, Lebanon, Nauru, Panama, Samoa, the United Arab Emirates and Vanuatu.

PARTIALLY COMPLIANT

Marshall Islands.

TRINIDAD AND TOBAGO

The Caribbean nation, previously rated non-compliant was "unable to demonstrate progress to warrant any upgrade to its rating," the OECD said.

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The IMF, following an Article IV Consultation with Peru, said the country's financial sector remains stable and that ensuring it continues to be so should remain a priority.

The multilateral also said there was a need for "continued focus on reducing dollarization to further mitigate currency mismatches and balance sheet vulnerabilities."

"Directors emphasized that implementation of strong structural reforms is critical to raise growth potential and achieve the high‑income status. Along with efforts to close the infrastructure gap, they called for further efforts to increase labor market flexibility, reduce economic informality, and improve business environment and fight corruption," the report said.