Information Americas, NY, NY, Solar. Feb. 22, 2026: Final week, the European Union up to date its checklist of non-cooperative jurisdictions for tax functions, including the Turks and Caicos Islands again to on the EU blacklist whereas eradicating Trinidad and Tobago. Anguilla and the U.S. Virgin Islands additionally stay on the EU’s checklist of jurisdictions that haven’t totally met agreed worldwide tax requirements.
“The Turks and Caicos Islands have been included in Annex I of the EU checklist of non-cooperative jurisdictions for tax functions following considerations raised by the OECD discussion board on dangerous tax practices relating to the enforcement of financial substance necessities within the jurisdiction,” the EU stated.
“The checklist is a part of the EU’s efforts to advertise tax good governance worldwide. It’s composed of nations which fail to adjust to agreed worldwide tax requirements or didn’t fulfil their commitments on tax good governance inside a selected timeframe,” an EU assertion stated. The opposite international locations on the checklist are American Samoa, Guam, Palau, Panama, Russia, Vanuatu, and Vietnam.
The adjustments comply with the OECD’s Discussion board on Dangerous Tax Practices (FHTP), evaluation, which flagged shortcomings within the Turks and Caicos Islands’ enforcement of its financial substance guidelines. For regional stakeholders, this replace is greater than a technical compliance adjustment – it carries actual implications for funding danger, capital circulation, and cross-border monetary exercise.
Being on the EU tax blacklist can invite enhanced scrutiny from worldwide banks and buyers, who’re more and more cautious about jurisdictional reputational danger and regulatory alignment. Blacklisted territories could face larger due-diligence prices, slower transaction critiques, and, in some circumstances, restrictions on entry to worldwide funds or incentives tied to EU markets. For Caribbean governments, companies, and funding hubs, the message is obvious: international capital allocators are putting larger emphasis on transparency, enforcement, and measurable regulatory compliance as situations for engagement.
The Turks and Caicos government has acknowledged the itemizing and burdened that the FHTP findings are centered on technical enhancements fairly than deliberate non-cooperation. Authorities have already commenced revisions to financial substance reporting instruments, expanded enforcement powers for regulators, and strengthened compliance monitoring capability. These steps sign a proactive intent to align with worldwide requirements and defend the jurisdiction’s standing as a reputable monetary middle.
“The Authorities stays totally dedicated to assembly and exceeding international regulatory expectations. The recognized enhancements kind a part of a steady enchancment course of that demonstrates the jurisdiction’s proactive and cooperative strategy to compliance,” a press release stated. “The Turks and Caicos Islands values its repute as a accountable worldwide monetary centre and can proceed to work constructively with worldwide companions to make sure full alignment with Financial Substance necessities and finest regulatory practices.”
For buyers and mission sponsors energetic in or getting into the Caribbean, this improvement is a well timed reminder to issue regulatory danger into capital planning and due diligence. Jurisdictional assessments – significantly these affecting tax and monetary reporting requirements – can materially affect financing phrases, companion choice, and danger pricing. Entities working within the area ought to replace compliance frameworks, have interaction with native regulators on evolving necessities, and take into account how coverage shifts could have an effect on capital entry over the following 12–24 months.
Finally, the EU tax replace underscores a broader international pattern: capital flows are more and more tied to regulatory certainty and worldwide cooperation. Caribbean markets that adapt swiftly and transparently to those expectations are higher positioned to draw long-term institutional funding and cut back the friction that may stall progress capital.
The EU checklist of non-cooperative jurisdictions for tax functions was established in December 2017. It’s a part of the EU’s exterior technique on taxation and goals to contribute to ongoing efforts to advertise tax good governance worldwide.
Jurisdictions are assessed primarily based on a set of standards laid down by the Council. These standards cowl tax transparency, truthful taxation and implementation of worldwide requirements designed to stop tax base erosion and revenue shifting. The Council updates the checklist twice a 12 months.The following revision of the checklist is scheduled for October 2026.
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