What are the EU, OECD, and FATF tax 'blacklists'? Should you avoid them when choosing an offshore jurisdiction?
When choosing an offshore jurisdiction, a common concern is whether it is on a 'blacklist.' In fact, there are three different lists: the EU 'List of Non-Cooperative Jurisdictions for Tax Purposes,' the OECD Global Forum's transparency peer reviews, and the FATF's high-risk AML list, each with different purposes and update frequencies. Being listed does not mean a jurisdiction cannot be used for incorporation, but it significantly increases account opening difficulty, reputational and compliance costs. When selecting a jurisdiction, check the 'current' official lists rather than relying on tax rates alone. Below, we explain each list and provide official reference points.
First, distinguish: the three 'lists' have different purposes
The commonly referenced offshore 'blacklist' actually conflates three sources, each with different authorities and purposes. The EU 'List of Non-Cooperative Jurisdictions for Tax Purposes' targets tax governance (transparency, fair taxation, BEPS participation); the OECD Global Forum conducts peer reviews on information exchange and transparency (focusing on 'information transparency' rather than punishment); the FATF list is a risk assessment for anti-money laundering/counter-terrorist financing, directly affecting bank-level scrutiny. When you hear 'a jurisdiction is on the blacklist,' first identify which list it refers to, then assess the impact accordingly.
EU List of Non-Cooperative Jurisdictions for Tax Purposes (Annex I and Annex II)
The EU Council maintains two lists: Annex I (commonly known as the 'blacklist,' jurisdictions deemed non-cooperative) and Annex II (the 'grey list,' jurisdictions that have committed to reforms and are under ongoing monitoring). The list is generally updated twice a year (usually in February and October). Inclusion in Annex I may trigger defensive measures by EU member states, such as enhanced withholding, restrictions on cost deductions, and increased reporting requirements. The list content changes as jurisdictions progress with reforms; always refer to the EU Council's current announcement.
Source：EU Council — EU list of non-cooperative jurisdictions
OECD: Transparency Peer Reviews, Focus on 'Information Transparency'
The OECD Global Forum conducts peer reviews of jurisdictions on 'tax transparency and exchange of information' (e.g., Compliant, Largely Compliant, Partially Compliant, Non-Compliant) and promotes the implementation of the Common Reporting Standard (CRS). It also reviews harmful tax practices (BEPS Action 5). Its nature is more evaluative and supervisory than a punitive list—a jurisdiction may have a good OECD rating but still appear on the EU or FATF lists for other reasons; the three are not always aligned.
Source：OECD — Global Forum on Transparency
FATF AML List: Most Direct Impact on Account Opening
The FATF publishes the 'High-Risk Jurisdictions Subject to a Call for Action' (commonly known as the blacklist) and 'Jurisdictions Under Increased Monitoring' (the grey list). These lists affect global banks' due diligence (KYC/AML): if a jurisdiction of incorporation or funds involves a listed jurisdiction, banks may intensify scrutiny, request additional documentation, or even decline account opening. In practice, the FATF list often impacts you sooner than tax lists, as it directly affects account opening and fund flows.
Source：FATF — High-risk and other monitored jurisdictions
Practical implications for choosing a jurisdiction of incorporation: being listed ≠ unusable
Being on a list does not mean a jurisdiction cannot be used for incorporation, but it usually implies more difficult account opening, higher compliance and reputational costs, and greater risk of future policy changes. Equally important is that 'lists change'—many offshore jurisdictions have been on the grey list and later removed after completing reforms. Therefore, decisions should not be based solely on an old list. When selecting a jurisdiction, evaluate 'current listing status' together with 'information transparency, account opening feasibility, and substance requirements,' rather than comparing tax rates alone.
How to check if a jurisdiction is listed
Three official reference points: ① EU Council 'EU list of non-cooperative jurisdictions' page for the current Annex I/II lists; ② OECD Global Forum website for the jurisdiction's transparency rating and CRS implementation status; ③ FATF website for the current 'High-risk and other monitored jurisdictions' list. Check each separately, cross-reference, and note the update dates. This site provides a neutral compilation of public information and does not evaluate individual jurisdictions; the official announcements from the above sources shall prevail.
Frequently Asked Questions
Must you avoid 'blacklist' countries when setting up an offshore company?
Not entirely unusable, but the costs must be assessed. Listed jurisdictions generally face more difficult account opening, higher compliance and reputational costs, and greater policy change risks. It is advisable to evaluate 'current listing status, information transparency, account opening feasibility, and substance requirements' together, rather than comparing tax rates alone.
How often is the EU tax blacklist updated? Where to check?
The EU Council list is generally updated twice a year (usually in February and October), divided into Annex I (blacklist) and Annex II (grey list). The current content and update dates can be found on the EU Council's official 'EU list of non-cooperative jurisdictions' page.
Are the Cayman Islands and BVI currently on the blacklist?
Lists change as jurisdictions progress with reforms; some offshore jurisdictions have been on the grey list and later removed after completing reforms. Therefore, do not generalize based on outdated information. Refer to the 'current' lists from the three official sources: EU Council, OECD, and FATF.
Is the EU list the same as the OECD and FATF lists?
No, they are different. The EU targets tax governance, the OECD assesses transparency and information exchange, and the FATF evaluates AML risk. The authorities and criteria differ, so results are not always consistent. A jurisdiction may be on one list but not another; check each separately.
Can a company incorporated in a listed jurisdiction still open accounts and operate?
Not necessarily impossible, but more difficult. In particular, the FATF list directly affects bank due diligence, potentially leading to heightened scrutiny, requests for more documents, or refusal to open accounts. In practice, the FATF list often impacts your account opening and fund flows sooner than tax lists.
How to check if a jurisdiction is listed?
Three official reference points: ① EU Council 'EU list of non-cooperative jurisdictions' ② OECD Global Forum transparency ratings ③ FATF 'High-risk and other monitored jurisdictions'. Check each separately, cross-reference, and note the update dates.
Official data sources
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