jurisdictions drawn up by an international financial watchdog The Royal Gazette can reveal.

The Organisation for Economic Cooperation of Development (OECD) will reveal today that the Island is not on its list of countries it considers tax havens.

Finance Minister Eugene Cox is delighted with the news, which he says will bolster the continued growth of the Island's international business sector.

It means the Island has escaped the threat of international action to clamp down on secretive, dodgy jurisdictions which do not cooperate in exchanging financial information.

On Friday, the OECD Council of Ministers in Paris approved Bermuda's letter of commitment to the OECD regarding its efforts to tackle harmful tax jurisdictions.

Mr. Cox said: "As a result I am delighted to be able to say that Bermuda is not included in the OECD list of tax havens, and companies located in Bermuda can continue to grow and plan for the future without any threat of co-ordinated defensive measures by the OECD.

"I am sure all of Bermuda welcomes this excellent news, the culmination of several years of dedicated effort by the Government of Bermuda to ensure that no obstacles to growth and development are placed in the path of Bermuda's international business sector.'' The announcement is the culmination of an investigation by the OECD into tax avoidance regimes and business secrecy contained in its report `Harmful Tax Competition: An Emerging Global Issue'.

Mr. Cox said the Island had addressed the OECD's concerns and had committed itself to a programme of effective exchange of information, transparency, and the avoidance of regimes for financial and other services attracting businesses with no substantial domestic activities.

In Government's letter to the OECD last month, Mr. Cox wrote: "In fulfilment of this commitment, the Government of Bermuda undertakes to implement such measures (including through any legislative changes) as are necessary to eliminate any harmful aspect of Bermuda's regimes that relate to financial and other services.'' Island escapes tax hit list Mr. Cox did not spell out which changes the Island may need to implement to satisfy the OECD.

He said the 29-nation OECD, which includes Britain and the United States, recognised Bermuda had mechanisms for exchanging financial information such as the US/Bermuda Tax Convention 1986 and the Criminal Justice (International Cooperation) (Bermuda) Act 1994.

"Bermuda has agreed to enter into programmes of effective exchange of information on tax matters with other countries in a form that is mutually agreed and beneficial,'' he said.

The OECD was also concerned about the lack of transparency in some jurisdictions and recognised countries need to know who the beneficial owners of companies are and the main activities of businesses registered in their jurisdiction.

"Bermuda rates very high on this issue and has carefully developed vetting procedures based on the `know your customer' principle,'' he said.

The OECD was concerned about preferential tax regimes set up to attract mobile capital.

He said: "While Bermuda does not have a preferential tax regime for international companies it does restrict the activities of exempt companies in the domestic economy.

"The OECD recognises our right to protect domestic business. Government is currently conducting a review of financial services to determine whether Bermuda would benefit from further liberalisation.

"As our economy grows in size and sophistication we must review existing laws to ensure that they continue to serve the best interests of Bermudian business and workers.'' The OECD will announce the other jurisdictions which have escaped the list at its Paris headquarters this morning.