On October 6, the European Union’s Economic and Financial Affairs Council (ECOFIN) removed the Cayman Islands from the European Union’s (EU) list of non-cooperative jurisdictions for tax purposes (EU List).

The ECOFIN placed the Cayman Islands on its EU List in February because the Cayman Islands had failed to implement legislative amendments (relating to the regulation and oversight of collective investment fund vehicles) before the agreed deadline. (The EU’s previous Code of Conduct Group meeting was on February 4, whereas the Cayman Islands enacted The Private Funds Law, 2020 and the Mutual Funds (Amendment) Law, 2020 only three days later on February 7. The meeting reviewed each jurisdiction’s commitment to reform their tax policies and recommendations were made to place jurisdictions on the EU List for non-cooperative jurisdictions for tax purposes).

In the recent October meeting, the ECOFIN recognized that the Cayman Islands’ legislative amendments were consistent with the EU’s requirements and thus removed the Cayman Islands from the EU List.

Further information is available here.