Bermuda has returned to the European Union’s (EU) ‘white list’ of fully cooperative tax jurisdiction for the first time since 2017.
According to the Bermuda Business Development Agency, the private sector worked collaboratively with the government, along with the active involvement of the Bermuda Monetary Authority, to implement reforms specifically relating to collective investment vehicles.
The decision to move Bermuda onto the ‘white list’ was made by EU finance ministers at the meeting of the Economic and Financial Affairs Council (ECOFIN).
Roland Andy Burrows, CEO of the Bermuda Business Development Agency (BDA), said: “This outcome is testament to Bermuda’s commitment to meet and exceed the highest international standards of regulatory compliance and economic substance.”
He added: “Combined with our world-leading achievements in the Financial Action Task Force assessment, together with Bermuda’s EU Solvency II equivalence and status as an NAIC reciprocal jurisdiction in the US. Bermuda’s blue-chip transparency and outstanding offering to global business are second to none.”
He added: “I thank Bermuda’s government, regulator and all our industry stakeholders for continuing to ensure Bermuda maintains its world-class regime.”
The EU blacklist was first introduced on 5 December 2017 as part of its efforts to clamp down on tax avoidance and harmful tax practices. Out of the 92 jurisdictions initially chosen, 17 including Bermuda, were added to the list.
Bermuda also featured in the EU’s ‘blacklist’ in March last year but was later moved onto the ‘grey list’ in May.
Bermuda’s global industry associations, representing sectors ranging from re/insurance, captive insurance, trusts and family offices to asset management, all echoed those comments and welcomed the EU decision.
Sarah Demerling, chair, Bermuda’s Alternative Investment Management Association (AIMA), said: “AIMA Bermuda has been working with the BMA and the Registrar of Companies in recent months to ensure that Bermuda’s funds regime complied with EU standards.”
“[Tuesday’s] news, recognising Bermuda as fully compliant, was very welcome for the jurisdiction and is testament to the hard work of the committee and also reflects the importance that the jurisdiction places on its commitment to tax transparency and EU tax good governance principles worldwide. It also follows the recent “excellent” endorsement from the Caribbean Financial Action Task Force in the global fight against money laundering and terrorist financing. We are very proud of these successes.”
