Officials of the Caribbean Association of Banks have expressed deep concern about the recent inclusion of Caribbean territories on the European Union Commission’s Black List of non-cooperative jurisdictions for tax purposes.

The association is urging regional governments to “carefully assess the deficiencies identified by the EU and take the necessary actions to ensure compliance with Global Standards in order to avoid further reputational risk/damage to the region.”

Blacklisted islands — the EU says to have not addressed deficiencies in tax laws — include the U.S. Virgin Islands, Bahamas, St. Kitts and Nevis, and Trinidad and Tobago.

Anguilla, Antigua and Barbuda, Barbados, Belize, Bermuda, British Virgin Islands, Cayman, Curaçao, Dominica, Grenada, Jamaica, St. Lucia and St. Vincent and the Grenadines are on an EU “Grey List” of countries improving their standards.

The association disputes the blacklisting designations and notes that the EU blacklisting will have “debilitating effects on our Caribbean economies and the “high risk” status also limits access to “critically-needed development funding from the EU.”