Is the EU “blacklist” to being reduced?

After the EU blacklisted 15 countries in April 2019, the trend towards its decrease continues to gain momentum. Beginning in June 2019, Aruba, Barbados and Bermuda were excluded from this list, European media reported that three more countries are ready to begin the path of modernization of the legislation.

Among the most likely candidates that can leave the "blacklist" are such countries as Belize and the Virgin Islands. Due to the fact that since the beginning of 2019, new rules for registration of IBC companies are already operating in Belize, and a system of preliminary evaluation of applications for registration of firms has been introduced in the Virgin Islands, they may claim that by the end of this year they can request a review of the status in cooperation with EU.

At the same time, Oman and the UAE, which also want to avoid the “black mark” from Europe, began to actively adopt new programs to control and transfer funds and assets. Thus, from 2020, Oman will join the BEPS program, which will definitely add to the country's reputation and can serve as a trigger for leaving the “blacklist”. Actually, the United Arab Emirates initiates the same trends. The Sheikhs of the Emirates introduce new rules for substance, as well as a strict procedure for controlling company funds, filing tax returns and financial statements.

Despite the desire of these four countries, the media noted that all countries on the “blacklist” have begun to change legislation to reduce reputational and financial losses. However, the decision on when and which country will be excluded from the “blacklist” will be taken by the members of the European Commission exclusively individually and in a strictly regulated manner. The first revision of the EU list is scheduled by the end of this year, and from 2020, consultations will be held every six months.

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