EU to draw up tax haven blacklist

A policeman stands guard outside Mossack Fonseca headquarters in Panama, April 13, 2016Image copyright

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The leak from Panama firm Mossack Fonseca revealed how wealth was hidden offshore

EU nations have agreed to draw up a blacklist of tax havens in the wake of the Panama Papers leaks.

Finance ministers have endorsed the move, which is to be completed by the end of the summer.

The European Commission says nations on the tax blacklist should be sanctioned if appeals for change go unheeded.

The leak of millions of files from Panama law firm Mossack Fonseca revealed how the rich and powerful use tax havens to hide their wealth.

Full coverage: Panama Papers

Plans for a single EU list of “non-cooperative jurisdictions” have been blocked in the past by conflicting national interests.

Currently the 28 EU states have different national lists of tax havens and can decide individually whether to impose restrictive measures.

Negotiations on the new common list are expected to be complex and the number of jurisdictions to be included remains unclear.

Ministers have also agreed to exchange information on the beneficial owners of companies and the EU is planning a crackdown on banks and tax advisers who help clients hide money offshore.

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