In May 2019, Bermuda was included on the “greylist” as a cooperative tax jurisdiction with a number of pending commitments to be implemented before the end of 2019. Bermuda delivered on these commitments, enhancing its regulatory framework and demonstrating its commitment to good tax governance.
Key amongst the legislative changes were those made to the Investment Funds Act 2006, primarily in relation to regulatory oversight of closed ended investment funds, bringing them within scope of the reporting regime in Bermuda. The economic substance legislation was also revised to ensure equivalency with other 2.2 jurisdictions.
Following on the heels of the Caribbean Financial Action Task Force report issued last month, which recognised Bermuda as a global leader in the fight against financial crime, this whitelisting solidifies Bermuda’s reputation as a leader in global compliance standards.
The revised legislation and regulations introduced significant changes which may impact your Bermuda entities. If you have any questions on how these changes may impact your entities, please reach out to your usual Appleby contact or a member of the team below.