Here is the converted article in Markdown format:

EU Adds Fiji to Tax Blacklist, Citing Lack of Cooperation

The European Union (EU) has added Fiji to its list of non-cooperative tax jurisdictions, citing the country’s failure to comply with international standards on transparency and fair taxation.

Background

Fiji was moved from the EU’s greylist to the blacklist after an assessment found that it had “harmful preferential tax regimes” that had not been abolished. The country has committed to complying with EU recommendations, but will be subject to ongoing monitoring by the EU.

Consequences

The decision is a blow to Fiji’s efforts to improve its financial sector and combat money laundering and terrorist financing. While Fiji has made progress in recent years, it still faces significant challenges in implementing effective anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Implications

The EU’s blacklist was established to identify jurisdictions that fail to meet international standards on tax transparency and cooperation. The criteria for inclusion on the list include a country’s level of transparency, fair taxation, and commitment to OECD base erosion and profit shifting minimum standards.

Fiji’s addition to the blacklist is a result of its failure to comply with these criteria in a timely manner. The country has been warned that it must take immediate action to address its tax regime and improve cooperation with the EU.

Risks

The decision has significant implications for Fiji, as it could affect the country’s ability to attract foreign investment and do business with European countries. It also raises concerns about the potential risks posed by Fiji’s financial sector to the global economy.

Response

Fiji’s authorities have vowed to comply with EU recommendations and improve its tax regime, but the country still faces significant challenges in implementing effective AML/CFT measures.

Keywords

Fiji
Money laundering
FATF
EU tax blacklist