(i) maintaining stringent policies and procedures against tax fraud, tax evasion, tax avoidance as well as money laundering and terrorism financing; and
(ii) supporting policy and regulatory developments in the area of tax good governance promoted by, inter alia, the EU, the Organisation for Economic Cooperation and Development (“OECD”) and the Global Forum on Transparency and Exchange of Information (“Global Forum”).
The EIB Group NCJ Policy outlines standards of a due diligence process towards operations with links to weakly regulated, non-transparent and non-cooperative jurisdictions, as well as presents a general approach of the EIB Group towards tax good governance. It also reiterates the EIB Group’s expectations vis-à-vis its Contracting Counterparties to disclose relevant tax good governance information in the course of the tax integrity due diligence process and throughout a business relationship if needed.
What are and how does the EIB Group determine which jurisdictions are non-compliant?
Non-Compliant Jurisdictions (“NCJs”) are designated on the basis of relevant classifications made by one or more Lead Organisations with respect to jurisdictions which have not made sufficient progress towards satisfactory implementation of EU and/or internationally agreed standards in connection with AML-CFT and/or tax transparency/tax good governance.
There are two types of NCJs:
1. “Restricted Jurisdictions” – jurisdictions classified by one or more Lead Organisations as “non-compliant”, “partially compliant”, “non-cooperative” or having an equivalent poor rating in connection with the above mentioned international and/ or EU standards; and 2. “Prohibited Jurisdictions” – jurisdictions:
(i) classified by one or more Lead Organisations as presenting ongoing and substantial AML-CFT risks, having repeatedly failed to address and/ or remedy (as the case may be) identified strategic deficiencies in its AML-CFT framework and for which call for action on members of the classifying Lead Organisation applies; or
(ii) which are Restricted Jurisdictions for both AML-CFT and tax purposes.
What are the Lead Organisations and what is their role under the EIB Group NCJ Policy?
Lead Organisations are organisations and standard setting bodies, including the EU, the United Nations, the International Monetary Fund, the Financial Stability Board, the Financial Action Task Force, the OECD, the Global Forum, the G20, the Inclusive Framework on BEPS and any successor organisation.
The Lead Organisations publish Reference Lists, i.e. ratings and/or lists assessing the level of adherence and/or implementation of internationally and/ or EU agreed standards in the field of AML-CFT and tax good governance. The Reference Lists help to determine higher risk jurisdictions in operations to be financed/supported by the EIB Group, in particular in connection with: (i) criminal activities such as money laundering, financing of terrorism, tax crimes and (ii) tax avoidance practices (“Targeted Activities”).
Where can I find the Reference Lists (lists of NCJs) published by the Lead Organisations?
As of today, the EIB Group NCJ Policy relies on the following AML-CFT and tax Reference Lists published by the Lead Organisations (and as amended and/ or supplemented from time to time): 
 The EIB Group shall not be liable for taking or not taking any action pursuant to or in connection with the maintenance/monitoring/update of such lists. Also, the EIB Group shall not be responsible for any damages, costs or losses whatsoever arising as a result of any change in those lists.
What are the EIB Group’s expectations from its Contracting Counterparties?
The EIB Group strives to enter into business relationships with Contracting Counterparties that are compliant with applicable laws, including in the area of AML-CFT and taxation, as well as best market standards.
As a rule, readiness to disclose relevant tax good governance information in the course of the tax integrity due diligence process is expected. Other expectations are exemplified in Appendix 1 to the EIB Group NCJ Policy and include amongst others:
(i) holding and providing adequate, accurate and current beneficial ownership information;
(ii) refraining from cross-border ownership structures which are primarily motivated by tax reasons and do not have economic substance;
(iii) endorsing the arm’s length principle for transactions with related parties.
Contracting Counterparties being financial intermediaries are expected to apply, on a risk-sensitive basis, principles referred to in the EIB Group NCJ Policy when extending EIB Group funding/support to final beneficiaries.
Why does the EIB Group support projects in NCJs?
Which EIB Group activities does the EIB Group NCJ Policy apply to?
The EIB Group NCJ Policy applies to:
(i) all New or Renewed Operations and (ii) all borrowing and treasury activities, where the approach followed shall take into account the specificities of these activities.
Does the EIB Group NCJ Policy apply to jurisdictions “grey-listed” for tax purposes?
What are the key principles of the EIB Group NCJ Policy?
The key principles of the EIB Group NCJ Policy are:
1. Prohibition against entering into New or Renewed Operations with an NCJ Link to a Prohibited Jurisdiction or a Location Link to a Restricted Jurisdiction; 2. Enhanced Vigilance in connection with all operations with NCJ Links; and 3. Reporting obligations to the Board of Directors.
As regards the prohibition principle, it applies to New or Renewed Operations with Contracting Counterparties incorporated/ established in NCJs. Exceptions are possible in limited cases only (please refer to question "Why does the EIB Group support projects in NCJs?").
As regards the enhanced vigilance principle, it may be extended on a risk-sensitive basis to operations with Contracting Counterparties incorporated/ established in ”grey-listed” jurisdictions for tax purposes (please refer to question "Does the EIB Group NCJ Policy apply to jurisdictions grey-listed for tax purposes?").
Which links to NCJs fall within the scope of the EIB Group Policy?
There are 3 types of the NCJ links:
(i)Location Link: the Contracting Counterparty is established/incorporated in an NCJ; (ii)Ownership Link: the Contracting Counterparty is owned (as per the meaning of AML Directive) by a legal or natural person established/ incorporated in an NCJ; (iii) Control Link: the Contracting Counterparty is controlled (as per the meaning of AML Directive) by a legal or natural person established/ incorporated in an NCJ.
For the purposes of the due diligence, on a risk-sensitive basis, a 10% ownership threshold applies.
What does relocation mean under the EIB Group NCJ Policy?
Relocation requirements apply to new Cross-border Operations with Contracting Counterparties incorporated/established in NCJs prior to a signature of a contract. Cross-border operations are those in the case of which the jurisdiction where the Contracting Counterparty is incorporated/established and the jurisdiction where the operation is physically implemented are different.
If the Contracting Counterparty’s place of incorporation/ establishment becomes classified as an NCJ, the EIB Group will not enter into a New or Renewed Operation with such entity unless it relocates outside the NCJ prior to signing of the contract.
What is the impact of the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes (“EU List”) on the EIB Group NCJ Policy?
The EU List, included in Annex I of the Council conclusions, is directly and automatically applicable under the EIB Group NCJ Policy. The EIB Group also continues to closely monitor progress of jurisdictions which are generally cooperative, but have not yet solved outstanding tax good governance deficiencies and takes them into account in the tax integrity due diligence process on a risk-sensitive basis (please refer to question "Does the EIB Group NCJ Policy apply to jurisdictions "grey-listed" for tax purposes?").
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