Panama's government is creating an international committee of experts to recommend ways to boost transparency in the Central American country's offshore financial industry.
President Juan Carlos Varela is trying to shore up confidence in his nation's financial sector after the leaking of 11.5 million documents from a prominent Panama-based law firm which helped create shell companies for the world's rich and famous.
David Cameron and his family do not benefit from offshore funds, Downing Street has said.
In a statement, a Number 10 spokesman said: "To be clear, the Prime Minister, his wife and their children do not benefit from any offshore funds.
"The Prime Minister owns no shares.
"As has been previously reported, Mrs Cameron owns a small number of shares connected to her father's land, which she declares on her tax return".
The statements comes after David Cameron personally distanced himself from the tax scandal during a Q&A with workers at accountancy firm PWC in Birmingham on Tuesday.
There he insisted he owns no shares or offshore funds.
The PM added: "No government and no prime minister has done more to make sure we crack down on tax evasion, on aggressive tax avoidance both here in the UK and internationally".
The financial watchdog ordered banks and businesses to check whether they have links to a law firm at the centre of the Panama Papers leak.
In a letter to the European Council President in 2013 Mr Cameron argued offshore trusts should not be subject to new transparency proposals.
The nature of the tax avoidance carried out by Blairmore Holdings may have been misunderstood.