The Marshall Islands Finance Minister says it is unfortunate his nation has been named on an EU tax haven blacklist.
He said they were in the process of meeting the requirements laid down by the European Union.
Brenson Wase said the "EU blacklisting is very sad".
He said the Marshalls had been working with both the EU and the OECD and had reached an understanding at its last meeting with the OECD.
Mr Wase said now the EU has unilaterally blacklisted the Marshalls.
The Marshall Islands in partnership with Virginia-based International Registries Inc. operates major corporate and ship registries.
Earlier this year, the Marshall Islands ship registry overtook Liberia to become the world's second largest behind Panama.
The head of the Marshall Islands Chamber of Commerce, James Mclean says there are politics involved with none of the British associated areas on the EU blacklist.
Also are the list is American Samoa, Guam, Palau and Samoa.