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. Last Updated: 07/27/2016

Russian Favorites Make Tax Haven List

The OECD on Monday published a list of 35 tax havens, including Russian favorites Liechtenstein, Niue, Nauru, the British Channel Islands and the U.S. Virgin Islands, but not Cyprus, and threatened sanctions a year from now if they failed to change their ways.

The Organization for Economic Cooperation and Development listed several Pacific and Caribbean offshore centers as paradises for tax dodgers, along with Monaco and Liechtenstein.

Gabriel Makhlouf, a British Inland Revenue official chairing the work of the OECD, said at a news conference it was impossible to give figures, but noted the British relief and development organization Oxfam said tax havens drain $50 billion from developing countries annually.

States that failed to toe the line over the next year would be open to the OECD's threat of sanctions, he said, and even if it was up to each OECD member to impose penalties itself there was agreement on the need to move jointly.

The Financial Action Task Force last week put Russia itself on a blacklist of financial centers deemed "uncooperative" in the fight against hot money. The FATF is the anti-money- laundering agency of the Group of Seven leading industrial nations.

Unlike Liechtenstein and the French-linked principality of Monaco, the British-linked islands of Jersey, Guernsey and the Isle of Man and the British colony of Gibraltar, among others, escaped the money-laundering list.

But they were included among the tax havens.

The OECD classifies tax havens as those with nominal or no taxes and that either openly or implicitly sell themselves as a place where foreigners can avoid any awkward questions or risk of information on their investments being disclosed.