The European Union loses billions of dollars per year through tax avoidance.
So it's threatening to crack down on countries who don't play ball when it comes to tax laws - and one of them might be New Zealand.
But what's the EU's problem with us?
New Zealand currently doesn't meet any of these standards and this isn't set to change even after the John Shewan-led inquiry following the Panama Papers.
If we don't comply, the punishment could be huge.
The EU could impose trade sanctions, suspend free trade negotiations and even slap travel bans or visa restrictions on New Zealanders.
The Government's playing down the risk of action by the EU but Labour leader Andrew Little says the threat should be taken seriously.