The Government of Panama signed today in Paris the Convention on Mutual Administrative Assistance in Tax Matters (MAC), a definitive step in updating and transforming the country’s international financial services platform. The MAC establishes a legal framework for the implementation of financial transparency and international cooperation initiatives.

The Convention was signed by the Panamanian Ambassador to France, Pilar de Aleman, and the Secretary General of the Organization for Economic Cooperation and Development (OECD), Miguel Angel Gurria, at the OECD Headquarters in Paris.

Panama and other 104 countries have joined this instrument that establishes the basis for international tax cooperation, including exchange of financial information by request between its signatories. It also allows for automatic exchange of tax information based on bilateral agreements.

The Panamanian Ambassador to France highlighted that the Convention allows for reservations on some assistance matters while allowing for flexibility in other matters, saying, „This will be determined by Panama before presenting the Convention to Congress for ratification.”

The Convention is one of several actions taken by Panama under the reform-minded administration of President Juan Carlos Varela to adopt the highest international standards in legal and financial transparency. Together with several other recently implemented legal and institutional reforms, the agreement continues to strengthen the country’s international services platform and is one more step towards preventing and fighting money laundering and the financing of terrorism and related activities.