19 February 2020News

EU officially recognises Bermuda as a fully cooperative tax jurisdiction

Bermuda has returned to the European Union’s “white list” of fully cooperative tax jurisdictions, in a decision made by the EU Finance Ministers at the meeting of the Economic and Financial Affairs Council (ECOFIN) in Brussels.

The decision follows months of work by the private sector, government officials and the Bermuda Monetary Authority, to implement reforms relating to collective investment vehicles (CIVs). Bermuda’s Economic Substance Amendment Act 2019 came into effect at the start of 2020 to address EU requirements.

Andy Burrows, CEO of the Bermuda Business Development Agency (BDA), described the decision as “testament to Bermuda’s commitment to meet and exceed the highest international standards of regulatory compliance and economic substance.”

Stephen Weinstein, deputy chair of the BDA, said ECONFIN’s decision “will benefit consumers and communities worldwide, reinforcing their efficient, level playing field access to Bermuda’s unrivaled risk management expertise and substantial financial capacity.”

John Huff, president and CEO of the Association of Bermuda Insurers and Reinsurers (ABIR), described Bermuda’s regulatory environment as “world-class”. He cited EU Solvency II equivalence, US reciprocal jurisdiction status and compliance with the Financial Action Task Force’s anti-money laundering regime as other notable regulatory achievements.

Ronnie Klein, executive director of Bermuda International Long Term Insurers and Reinsurers (BILTIR), added: “Bermuda continues to shine as a beacon for the growing life insurance and reinsurance sector."