Bahamian State Minister for Finance hailed the move as the culmination of extensive bilateral discussions with the French Government

The Government of France has removed The Bahamas from its list of non-cooperative states and territories in tax matters.

The list, which is updated annually by the French Ministry of Economics and Finance, was published in the Official Diary of the French Republic last Thursday, March 4.

The French government imposes a number of sanctions on blacklisted countries, including applying withholding taxes at a higher rate on financial transactions involving blacklisted countries.

This sanction serves as a disincentive to French taxpayers, both individuals and companies, wishing to conduct business in blacklisted countries. Blacklisting also carries reputational risks and may affect a country’s ability to access international markets.

Removal hailed by State Minister for Finance

In hailing the move, The Bahamas State Minister for Finance, Senator J. Kwasi Thompson stated that “the decision by France to remove The Bahamas from its tax blacklist is the culmination of extensive bilateral discussions with the French Government since we were first listed in December 2019. From the moment we learned that The Bahamas was listed, we set about to vigorously disprove France’s assumptions about our commitment to the international regulatory standards on tax cooperation and exchange of information for tax purposes.”

Thompson explained that the discussions with the French authorities have been fruitful and have fostered a deeper degree of cooperation between our two countries. “We have aptly demonstrated that The Bahamas is indeed doing its part in the global effort to eradicate harmful tax practices,” the State Minister for Finance remarked.

Over the past year, The Bahamas has amplified its engagement in the international community to defend the integrity of the jurisdiction against the criticism that it is not doing enough to curb financial crimes. In March 2020, the European Union removed the Caribbean territory from its list of uncooperative jurisdictions for tax purposes.

Last December, the Financial Action Task Force removed The Bahamas from its anti-money laundering and counter-terrorism financing watchlist.