Financial Crime World

Fiji Added to EU Blacklist for Tax Non-Cooperation

Overview of the Situation

Fiji has recently been added to the European Union’s (EU) list of non-cooperative tax jurisdictions, also known as the blacklist. This move comes after the EU assessment found that Fiji has not complied with certain criteria related to transparency, fair tax competition, and commitment to OECD’s Base Erosion and Profit Shifting (BEPS) minimum standards.

Key Points

  • No History on FATF Blacklists: Fiji has never been featured on the Financial Action Task Force (FATF) blacklists in the past.
  • EU Blacklist Criteria: The European Commission assesses third countries’ performance against three criteria:
    • Transparency
    • Fair tax competition
    • Commitment to OECD’s BEPS minimum standards

Fiji’s Addition to the EU Blacklist

Fiji was moved from the greylist to the blacklist after not complying with the EU criteria in due time. The main reason for this move is that Fiji has “harmful preferential tax regimes” that have not yet been abolished.

Commitment to Comply

Fiji has committed to comply with EU recommendations, which will be subject to monitoring by the EU. This commitment indicates a willingness on Fiji’s part to address its tax-related concerns and work towards removal from the blacklist in the future.

Relevant Sources

For further information on this topic, you may want to refer to the following sources:

  • APG Reports: The Asian-Pacific Group (APG) has published two reports on Fiji’s mutual evaluation: one in 2016 and another follow-up report in 2019.
  • Fiji FIU Annual Report: The Fiji Financial Intelligence Unit (FIU) publishes an annual report, which includes information on money laundering and terrorist financing risks in Fiji.
  • Global Financial Integrity Data: Global Financial Integrity provides data on money laundering and other financial crimes by country.

Conclusion

Fiji’s addition to the EU blacklist serves as a reminder of the importance of cooperation between countries in addressing tax-related concerns. By working towards compliance with EU recommendations, Fiji can take steps towards removal from the blacklist and improve its reputation in the global community.