Named and shamed

Andorra Liberia Liechtenstein Marshall Islands Monaco Nauru Vanuatu

The Organisation for Economic Cooperation & Development (OECD) said the seven had failed to meet its standards on financial transparency and effective exchange of information.

They now face the threat of sanctions from the 30 OECD member states - a move that could, if implemented, sharply reduce their attractiveness to foreign investment.

The named and shamed territories are Andorra, Liberia, Liechtenstein, the Marshall Islands, Monaco, Nauru, and Vanuatu.

Monaco's government said it had taken steps to increase the exchange of information on tax and felt it was subject to unfair treatment by the OECD.

"The principality is unable to understand the reasons why it is subject to treatment different from that applied to neighbouring countries," it said in a statement.

Double standards

The government of Vanuatu decided in February not to join the tax policy initiative, arguing that it was being asked to accept standards yet to be embraced by Switzerland, Luxembourg, Belgium and Portugal.

"The fact that significant OECD members have not committed to the standards being demanded of non-OECD states is an important reason behind Vanuatu's decision," it said in a statement.

The OECD said it remained open to further talks with the named countries and looked forward to the possibility of their future commitment to its standards.

The blacklist of uncooperative states, which initially contained 35 names, was drafted in 2000.

Many of those states later made commitments on transparency and information exchange.

Nations that have appeared on the blacklist since it was created include Russia, Egypt, Israel, Guatemala, Hungary, Indonesia, Lebanon, Myanmar and the Philippines.

Possible sanctions against uncooperative states include imposing a withholding tax on funds transferred to the territories, analysts said.