American Samoa remains on EU blacklist of tax havens

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American Samoa remains on the European Union’s blacklist of tax havens despite efforts by ASG and the US Treasury to get it off the list.

The EU has removed Bermuda and the island of Aruba and Barbados from the list leaving just twelve jurisdictions, which includes the US territories of American Samoa, Guam and the U.S. Virgin Islands. Other Pacific islands on the list are Samoa, Fiji, Marshall Islands and Vanuatu.

Blacklisted states face reputational damage and stricter controls on transactions with the EU.

The list initially comprised 17 jurisdictions, but it is subject to regular reviews. Countries with legal shortfalls are added if they do not amend their rules by set deadlines.

In the case of the Caribbean islands which have now been removed, the EU blacklisted them because they had failed for months to change their tax rules which the EU deemed at risk of facilitating tax evasion in other countries.

In February, American Samoa, Guam and Samoa were added to a new EU blacklist on money-laundering and terrorism financing.

The EU said the territories, Samoa and twenty others on the list have strategic deficiencies when dealing with suspicious money flow.

EU Commissioner Věra Jourová said it stands ready to work closely with the countries to address the issues.

In a statement, the US Treasury Department rejected the inclusion of American Samoa, Guam, along with Puerto Rico and the US Virgin Islands.

The department claims the review process was flawed and little warning was given to the countries with no opportunity to respond.