The European Union (EU) has added Anguilla and Barbados to its blacklist of tax havens.
Countries on the EU blacklist of tax havens are deemed non-co-operative jurisdictions that are not compliant with good-governance standards.
Countries on the blacklist face damage to their reputation, higher scrutiny in their financial transactions, and risk losing EU funds.
As Anguilla and Barbados have been added to the list, the Cayman Islands joins the BVI in being removed from the blacklist.
There are now 12 countries on the EU’s list — The US Virgin Islands, American Samoa, Anguilla, Barbados, Fiji, Guam, Palau, Panama, Samoa, Seychelles, Trinidad & Tobago, and Vanuatu.
The EU blacklist of tax havens was set up in 2017 to clamp down on tax evasion and avoidance schemes in member states. The blacklist does not screen EU countries.
In February 2020, EU upgraded the British Virgin Islands to whitelist status, which signals the country as a fully cooperative tax jurisdiction that is observing all of the tax good-governance standards.
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