European Union finance ministers added Panama, the Seychelles, the Cayman Islands, and Palau to the EU's blacklist of tax havens while giving Turkey more time to avoid being listed, an EU document said on Tuesday. The list, which was set up in 2017 after revelations of widespread tax evasion and avoidance schemes, now includes 12 jurisdictions.

Adding financial centers like the Cayman Islands and Panama marks a shift for the EU. Several reviews had left on the list mostly Pacific and Caribbean islands with almost no financial relationship with the EU - drawing criticism for being too lenient on tax havens. The other listed jurisdictions are Fiji, Oman, Samoa, Trinidad and Tobago, Vanuatu and the three U.S. territories of American Samoa, Guam, and the U.S. Virgin Islands.

Those on the blacklist face reputational damages, higher scrutiny in their financial transactions and risk losing EU funds.