CARICOM heads are asking the European Union (EU) to cease its blacklisting of Member States that have committed to reforming their tax structures, calling the approach to “tax good governance” an infringement on sovereignty, coercive and harmful to the future of the community’s economic sector.
In its communique following the Thirtieth Intersessional Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM), held in St Kitts and Nevis on Tuesday and Wednesday, it was highlighted that the blacklisting of members of the community by the EU has resulted in considerable reputational damage to the community.
It was further noted that the community is committed to good governance, but recognizes that small, highly vulnerable states require access to external capital in order to build resistance.
They, therefore, recommended a more collaborative approach, where Member States would conduct the required impact and sensitivity analyses needed, to determine how to further align their tax regimes with global standards for tax transparency and governance, CARICOM stated. It was suggested that whatever strategy adopted should target both the immediate protection of the sovereignty of Member States, as well as those members’ future relations with Europe.
“Despite all Member States, with the exception of one, being removed from the EU blacklist, the damage inflicted is irreparable and has consequential implications for building Member States’ economic and climate resilience given our inherent vulnerabilities,” the communique stated.
The communique also reported that government heads, noting other EU initiatives designed to identify countries with “strategic deficiencies in their Anti Money Laundering/Countering the Financing of Terrorism (AML/CFT) frameworks” and to “monitor high risk investor citizenship and residence schemes within the context of their visa suspension mechanism for visa-free countries,” will embrace a recommendation to convene a Biennial Caribbean Regional Conference on AML/CFT Risk Management this year.
The initiative reportedly comes from the CARICOM Committee of Central Bank Governors. The conference, the release said, will allow for the dissemination of information on Member States’ AML/CFT Frameworks and will facilitate the Community’s engagement with AML/CFT stakeholders internationally.
