London Daily

Focus on the big picture.
Wednesday, Jul 30, 2025

Blacklisting huge blow to Caribbean financial services in the middle of COVID-19

Blacklisting huge blow to Caribbean financial services in the middle of COVID-19

The Bahamas, Barbados and Jamaica have been advised that they will be joining Cayman, the US Virgin Islands and Trinidad & Tobago on the European Union’s blacklist of non-cooperative jurisdictions.
The designation poses a particular threat to regional economies in the context of the economic fallout of the pandemic with the “sudden stop” of the tourism economy and the closing of borders.

“We must absolutely come off that list in October. If not I think there will be some dire consequences to follow which we must avoid pretty much at all costs,” says Premier, Alden McLaughlin, of the fact that without tourism, the country’s financial services industry will be required to pick up the “economic slack” in the months to come.

In February, less than one month after the UK left the European Union, Cayman became the first UK overseas territory to be singled out by Brussels, causing many to speculate whether the blacklisting was an act of “retaliation”.

The Cayman Islands and the British Virgin Islands were both up for review by the EU after being greylisted in 2019. EU27 ambassadors indicated that Cayman had not adequately addressed concerns around companies without sufficient economic presence on-island that were claiming tax advantages.

Cayman’s Premier has indicated that work towards de-blacklisting the island is a critical priority, “Even amid the COVID-19 pandemic that is a major source of worry and concern.”

“You would have seen a number of pieces and bills that have been published from the financial services industry dealing with a number of different things… almost all of those are dealing with aspects of concerns that were flagged with respect to the CFATF situation as well as the EU blacklisting. Work is proceeding apace with respect to that,” he continued, indicating that there would be a meeting later in May to consider those bills.

Last month, EU countries ruled out coronavirus aid for businesses registered or with subsidiaries in blacklisted jurisdictions. These have been among a variety of restrictions that threaten the sector poised to be the primary income earner in many Caribbean countries, post-pandemic.

Bahamas’ Attorney General and Minister of Legal Affairs, Carl W Bethel, has argued that the EU, despite committing to provide adequate notice of the listing, did not do so.

Dale Marshall, Barbados’ Attorney General and Minister of Legal Affairs, echoes “We have been given no details of this, and in fact the first time we are hearing of it is through the overseas press.”

In recent discussions with Loop Cayman, top regional economist, Marla Dukharan has referred to the EU’s stance on tax policy and anti-money laundering policy as “unreasonable, unfair, oppressive, and shamelessly hypocritical.”

“I applaud the Cayman Islands, Barbados, and other small countries for doing their utmost to comply with the continuously shifting but consistently unfair demands made of them, which by the way, aren’t adhered to by the very countries imposing these standards and requirements,” she says.

According to the Commission, blacklisted countries “pose significant threats to the financial system of the Union” but Dukharan rightly questions, “How does any small country defend itself against this sort of behaviour, which poses severe risks for its socio-economic wellbeing?”

With what has been referred to as an “unconscionable” move by the European Union, during a period when Caribbean countries are literally reeling from the economic impacts of COVID-19, the irony of the EU’s stance is impossible to overlook.

“Level global playing fields are a utopian concept for small countries,” says Dukharan.
Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×