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.
John Huff, president and CEO, Association of Bermuda Insurers and Reinsurers (ABIR), said: “The Bermuda Monetary Authority, Bermuda Finance Minister, Bermuda government and Bermuda business community once again demonstrate internationally-recognised regulatory enforcement. From EU Solvency II equivalence, US Reciprocal Jurisdiction status, Financial Action Task Force compliant anti-money laundering regime and now EU Economic Finance ‘white list’ designation recognising Bermuda’s solid work on EU tax good governance and our economic substance framework, Bermuda’s robust regulatory environment is world-class.”
