Halt the black, grey listing, CARICOM urges

Barbados has once again called on the European Union (EU) to put an end to its persistent black and grey listing of Caribbean Community (CARICOM) countries as non-cooperative tax jurisdictions.

Barbados’ representative to the recent 61st Organisation of African Caribbean and Pacific (OACPS) Parliamentary Assembly and the 42nd African Caribbean Pacific (ACP)-European Union (EU) Joint Parliamentary Assembly in Maputo, Mozambique, Edmund Hinkson said he made the appeal on behalf of this country and other ACP States.

“The EU has so far refused to budge on what it perceives as its right to continue its unilateral black and greylisting of countries in the CARICOM, Africa and Pacific regions as non-compliant states on ATM/CFT issues, even after they have come off the lists of the Financial Action Task Force (FATF) and the Organisation of Economic Cooperation and Development (OECD) and even although some EU member states are seriously in breach of their own standards but are not so listed,” said Hinkson, Parliamentary Representative for St James North.

He also explained that while ACP states “totally” agree with the EU countries that matters of tax avoidance, money laundering and terrorist financing are of paramount concern globally, especially considering that an estimated BDS $1.6 million is laundered annually, the ACP nations require greater structured dialogue and appropriate consultations with, and wider technical assistance for capacity building from the EU to address these issues.

The Government backbencher pointed out that this is the preferred pathway rather than what currently obtains where the EU continuously places some ACP member states, including Barbados, on  black and grey lists on the notion that they “facilitate tax evasion by external companies” through financial services and international business sectors.

“Member states called on the EU to remove the affected countries from these lists once they have come off the lists of the OECD and FATF and to only use these listings as a last resort to address any strategic deficiencies within the legislative or administrative framework of our countries,” Hinkson disclosed.

He said that negotiations and further work were required on this matter.

A draft report on the EU’s listing of non-cooperative tax jurisdictions and its listing of third countries regarding anti-money laundering and counter-terrorism financing was presented by Hinkson for consideration before the ACP’s Committee on Economic Development, Finance and Trade.

The draft was agreed upon by the EU’s co-rapporteur and Member of the European Parliament, Alessandra Basso and Hinkson as co-rapporteur on the topic on the ACP’s behalf.

Barbados also put forward the position of the third states to the joint meeting with the European Union of the Committee on Economic Development, Finance and Trade, concerning the EU’s listings of these states, the majority of which are ACP member countries.

Hinkson said Barbados was also instrumental in crafting the resolution, which was agreed on to acknowledge the importance of the gradual phasing out of and transition from fossil fuels to renewable energy.

The recently-ended joint sessions took place between October 25 and November 2.

The next meetings of the OACPS Parliamentary Assembly and the ACP-EU Joint Parliamentary Assembly are expected to be held in Sweden in February next year. (EJ)