Recital 6

(6)Securitisation special purpose entities (SSPEs) should only be established in third countries that are not listed by the Union ⁵ on the EU list of non-cooperative jurisdictions for tax purposes, and updates thereto (Annex I), or in the list of high-risk third countries which have strategic deficiencies in their regimes on anti-money laundering and counter terrorist financing. Annex II on the State of play of the cooperation with the EU with respect to commitments taken by cooperative jurisdictions to implement tax good governance principles reports on the state of play of discussions with certain cooperating third countries, some of which currently maintain harmful tax practices. Such discussions should lead to a timely termination of such harmful tax practices to avoid future restrictions on the establishment of SSPEs.