Nauru is being taken off a blacklist of renegade tax havens by the Organisation for Economic Co-operation and Development.
The OECD, a grouping of the world's economic powers, had previously included Nauru on the list of those deemed to be turning a blind eye to tax dodgers and money laundering.
The news agency Reuters reports that the OECD had welcomed the commitment of the South Pacific country had made to improve transparency and exchange information regarding tax matters with OECD countries.
Nauru has been accused by the U.S. of ignoring laundering through its banks of billions of ill-gotten funds that were spirited out of Russia.
A number of other territories, including the Marshall Islands, are still on the list.