European Union finance ministers have added the Turks and Caicos Islands and Vietnam to the EU’s list of tax havens, while removing Fiji, Samoa, and Trinidad and Tobago, the bloc said in a statement on Tuesday.
Following the updates, the EU now identifies 10 jurisdictions as tax havens: American Samoa, Anguilla, Guam, Palau, Panama, Russia, Turks and Caicos Islands, U.S. Virgin Islands, Vanuatu, and Vietnam.
“The list is part of the EU’s efforts to promote tax good governance worldwide,” the statement said. “It includes countries that fail to comply with agreed international tax standards or have not fulfilled their commitments on tax governance within a set timeframe.”
Countries on the EU list face reputational damage, increased scrutiny of their financial transactions, and potential restrictions on access to EU funds.