15/04/2016 21:44 BST | Updated 15/04/2016 21:47 BST

George Osborne Threatens To Blacklist Countries Who Don't Comply On Tax In Wake Of Panama Papers Leak

'The world is getting a much colder place for the hotspots of international tax evasion.'

Countries that refuse to "play by the rules" on tax transparency will be blacklisted, George Osborne warned on Friday.

The Chancellor's announcement comes just days after the Panama Papers leak, which saw the publication of millions of documents which contained the names of people allegedly involved in tax evasion schemes. 

Osborne, who is in Washington, said an international agreement had been struck to tackle tax havens that flout the rules.

Lauren Hurley/PA Wire
George Osborne threatens to blacklist countries who don't comply on tax.

The Tory minister joined Prime Minister David Cameron in revealing details of his private finances this week, prompted by the mass leak of documents regarding offshore companies.

Speaking ahead of a meeting of G20 finance ministers, Osborne said: "We've got international agreement to a black list of tax havens and that means we can get global action against those who don't play by the rules.

"The world is getting a much colder place for the hotspots of international tax evasion."

It comes after a crackdown on international tax dodging to "lift the veil of secrecy" that criminals hide under was agreed.

The deal to share information on the true owners of companies will make it harder for criminals to channel corrupt gains or evade tax.

Under the move, tax and law enforcement agencies from Britain, Germany, France, Italy and Spain will exchange information regarding beneficial ownership registers, and new registers of trusts, which, the Chancellor says, will allow for better investigation of financial wrongdoing.

Osborne, along with counterparts from Germany, France, Italy and Spain, wrote to fellow G20 members urging them to build upon the system of European co-operation agreed in order to remove "the veil of secrecy under which criminals operate".

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