Panama has signed OECD’s multilateral convention on mutual administrative assistance in tax matters, to boost transparency and combat cross-border tax evasion.
Panama is the 105th jurisdiction to sign the convention, which was developed by the OECD and the Council of Europe in 1988.
The signing of the latest deal comes following the massive data leak, dubbed the Panama Papers, which exposed how the world's affluent conceal their wealth from the taxman.
The database contained the names of shareholders, beneficiaries, intermediaries and addresses pertaining to over 200,000 offshore entities found in Panama-based law firm Mossack Fonseca's internal database.
Following the leak, EU finance ministers approved multiple anti-tax evasion measures to combat the tax-evading methods.