Panama is working to maintain its reputation in the
global marketplace after it took a hit from the Panama Papers leak. Finance Minister Dulcidio De La Guardia told LatinFinance that the government has accelerated talks with the OECD
on financial transparency and compliance.

The Panama Papers include roughly 11.5m confidential
documents that provide information on offshore companies listed by
Panama City-headquartered law firm Mossack Fonseca. The leaked documents showed
how individuals hid money from tax authorities.

“We are working very closely with the OECD,” De La Guardia
said. “There will be meetings over the next couple of weeks to hammer out the
final details of any conditions pending.”

Over the past year and a half, Panama has passed new laws to reduce financial crimes, such as a law banning bearer shares, or shares not
registered or identified. In February, the Financial Action Task Force (FATF),
an intergovernmental organization aimed at combating money laundering and
terrorist financing, took Panama off its gray list.

“The international community should recognize what Panama
has done in the last 18 months,” De La Guardia said. “The president agreed last
year at the UN that Panama will adhere to global requirements.”

Despite being taken off of FATF’s gray list, the revelations
contained in the Panama Papers highlight the need for the country to improve transparency and compliance.

OECD Secretary-General Angel Gurria said in a statement
that the OECD was leading a “global crackdown” on practices where funds are hidden
offshore, away from tax and law enforcement authorities. He said Panama was “back-tracking on its commitment to the automatic exchange of financial account
information” and warned that Panama needed to “put its house in order by
implementing these standards.”

De La Guardia added that Panama “will do whatever it takes
to clean up its reputation” and is looking to distance itself from Mossack
Fonseca.

“This firm is headquartered in Panama but operates
globally,” he said. “They’ve been selling from 21 different jurisdictions and
the vast majority of their clients are not Panamanian.”

De La Guardia said the news of the Panama Papers damaged the country’s reputation and added that the finance ministry was meeting with investors to
reassure them of Panama’s legitimacy.

“The message we are sending is that we will cooperate with
any foreign government that has been impacted by this news,” he said. “We need
to remind the world of what Panama has done in the short term.”

Spreads on Panama’s existing bonds have remained steady
since news of the Panama Papers broke. The sovereign issuer has received a
private order to reopen one of its bonds.