Financial Crime World

BERMUDA LEADS THE WAY IN TAX TRANSPARENCY AND REGULATION

A Leader in Regulatory Excellence

Bermuda, a tiny island nation in the North Atlantic, has earned a reputation as a leader in tax transparency and regulation. Defying conventional wisdom, Bermuda’s commitment to cooperation with international authorities and adherence to global standards has made it an unlikely darling of regulators on both sides of the Atlantic.

Key Features of Bermuda’s Regulatory Framework

  • No banking secrecy laws: Financial services entities are required to adhere to internationally recognized regulatory standards.
  • Adherence to global standards:
    • Basel III standard for banks
    • Financial Action Task Force (FATF) standards for Anti-Money Laundering/Anti-Terrorist Financing (AML/ATF)
  • Transparency and cooperation: Bermuda has adopted OECD standards for Base Erosion and Profit Shifting (BEPS) compliance and signed the Declaration to the Multilateral Competent Authority Agreement for the automatic exchange of financial account information via Common Reporting Standard (CRS) and Country-by-Country reports.

Recognition and Accolades

  • European Union: Bermuda has been awarded full equivalence with its Solvency II insurance regulatory regime.
  • US National Association of Insurance Commissioners (NAIC): Bermuda has received full Qualified Jurisdiction status, one of only seven jurisdictions to be qualified.
  • Canadian newspaper: Praise for Bermuda’s transparent enforcement policy.

Economic Benefits

  • Close to a half-million jobs globally: Supported by trade, foreign direct investment, and portfolio investment capacity.
  • US, Canada, and UK: Estimated 300,000 jobs in the US, 30,000 in Canada, and 70,000 in the UK through trade, foreign direct investment, and portfolio investment capacity.

Conclusion

Bermuda’s commitment to regulatory excellence has earned it recognition as a world leader in tax transparency and regulation. Its reputation for transparency and cooperation is crucial to its continued success as a robustly regulated and supervised financial services centre.