PANAMA is inching closer to ending  its reputation as a tax haven and money laundering center.

The Global Forum on Transparency at a meeting in Barbados  has formally approved the passage of the country to the second phase of the peer review.

This happened at a meeting of the body in Barbados, which concluded Friday.. At the meeting last week, the recommendation of the review group was approved by the entire 128-member body.

The group approved the recommendation based on Panama's reforms to its regulations regarding bearer shares, which are expected to prevent money laundering and the financing of terrorism. The country has also shown a willingness to exchange tax information.

Panama has been criticized for being one of the last financial centers to allow bearer shares, which make it extremely difficult to track the owners of financial vehicles.

The group also noted President Juan Carlos Varela's pledge to the United Nations to address money laundering.

"With these commitments, all the major financial centers are now involved in efforts to enhance international tax cooperation," the Global Forum said in a statement at the end of the conference.

In a supplementary report of Panama, the Global Forum anticipates that phase 2 of the review will begin in the last quarter of this year.

"Any further development of the legal framework, as well as the practical application of the exchange of information, will be considered in detail in phase 2," it said.

Since 2010, Panama has negotiated tax agreements with 30 countries.