Palau has been put back on a European Union blacklist of tax havens, after Brussels said it failed to implement promised reforms.
The capital of Palau, Koror. Photo: Binter via wikicommons
The European Council said Palau was one of 12 tax jurisdictions it considers "non-cooperative".
Brussels had agreed to remove Palau from the list in October after it committed to a range of tax reforms.
But on Monday night it was returned to the blacklist for failing to meet those commitments.
Meanwhile, the Cook Islands, Nauru, Niue and the Marshall Islands have been removed from the EU's list.