The Observer reports Belize has failed to abide by a global accord to improve international transparency and exchange of information on tax.
Anyone who has visited Belize City, the country's capital, for more than a few hours knows it's a pretty lawless place. Drugs and murder have ravaged the city and brought it to its knees.
But Belize itself is a country of contrasts: while there's terrible poverty and endemic gang crime in the capital, there's also incredible wealth. The über rich - folks like Conservative party benefactor and deputy chairman Michael Ashcroft - flock there to take advantage of the glorious sunshine, paradise cayes, and low tax rates.
Who is Michael Ashcroft?
Ashcroft has bankrolled the Tories for the best part of three decades. Yet it would seem he's spent most of that time in Belize. Not only does he own significant property interests there, he's also the chairman of the country's biggest bank.
In 2000, Ashcroft was granted a seat in the Lords after promising to return to the UK and pay UK income tax. It remains unclear, however. whether he ever fulfilled that pledge.