EU returns Bermuda to white list of fully cooperative tax jurisdictions

Bermuda has been removed from the European Union’s (EU) so-called tax ‘grey list’ and returned to the ‘white list’ of fully cooperative tax jurisdictions. Bermuda was placed on the grey list in May last year, having been put on the list of non-cooperative tax jurisdictions earlier in 2019. The EU had some concerns over collective investment funds but the Bermuda Monetary Authority implemented reforms specifically relating to collective investment vehicles, and Bermuda’s Economic Substance Amendment (No. 2) Act 2019 came into effect at the start of 2020 to address EU requirements. Bermuda’s global industry groups welcomed the news and applauded the efforts of Bermuda’s government in securing a successful result. 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. Combined with our world-leading achievements in the Financial Action Task Force assessment, together with Bermuda’s EU Solvency II equivalence and status as a NAIC Reciprocal Jurisidiction in the US, Bermuda’s blue-chip transparency and outstanding offering to global business is second to none.” Stephen Weinstein, deputy chair of the BDA, added: “ECONFIN’s decision is a positive step that will benefit consumers and communities worldwide, reinforcing their efficient, level-playing-field access to Bermuda’s unrivalled risk management expertise and substantial financial capacity. We appreciate the efforts of Bermuda government officials, from the Cabinet to the professional staff of its world-class agencies, who have engaged to educate global stakeholders regarding Bermuda’s regulatory standards and market practices.” John Huff, president and CEO of the Association of Bermuda Insurers and Reinsurers, said: “The Bermuda Monetary Authority, Bermuda finance minister, Bermuda government and Bermuda business community once again demonstrate internationally recognised regulatory enforcement. With EU Solvency II equivalence, US Reciprocal Jurisdiction status, a Financial Action Task Force-compliant anti-money laundering regime and now the 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.” Patrick Tannock, chairman of the Association of Bermuda International Business, said: “A key component of our value proposition as a jurisdiction is our commitment to transparency and compliance and the collaborative mindset of key stakeholders, to ensure that Bermuda remains an international business domicile of choice. The government, industry and regulators have worked collaboratively over the past two years to build on Bermuda’s proven record to meet the EU requirements for economic substance. Today’s announcement is further confirmation that Bermuda is a high-quality international business jurisdiction, recognised as meeting and exceeding international standards in compliance, regulation and transparency.”

EU returns Bermuda to white list of fully cooperative tax jurisdictions

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