Bermuda returns to EU's 'white list' of fully cooperative tax jurisdictions

Bermuda has been moved back to the European Union’s so-called “white list” of fully cooperative tax jurisdictions, nine months after its removal from the blacklist of non-cooperative jurisdictions.

The decision was made by EU Finance Ministers at the meeting of the Economic and Financial Affairs Council (ECOFIN) in Brussels. It follows months of work by the private sector, government officials and the Bermuda Monetary Authority, to implement reforms relating to collective investment vehicles (CIVs). Additionally, Bermuda’s Economic Substance Amendment Act 2019 came into effect at the start of 2020 to address EU requirements.

The re/insurance hub was one of the 15 countries added on the blacklist in March 2019 for failing to meet good tax governance standards. However, following a meeting of EU finance ministers, the island was removed from blacklist in May and moved back to the EU’s ‘grey list’.

“This outcome is testament to Bermuda’s commitment to meet and exceed the highest international standards of regulatory compliance and economic substance," said Roland Andy Burrows, CEO of the Bermuda Business Development Agency (BDA). "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 Jurisdiction in the U.S., Bermuda’s blue-chip transparency and outstanding offering to global business is second to none. I thank Bermuda’s government, regulator and all our industry stakeholders for continuing to ensure Bermuda maintains its world-class regime.”

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 the Bermuda’s unrivaled risk management expertise and substantial financial capacity."

John Huff, president and CEO of the 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, U.S. 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.”