Senator Carl Levin has removed Guernsey, a UK Crown Dependency, from his "blacklist" of "offshore secrecy jurisdictions", following a visit by the island's chief minister to Washington.

This move signals a strengthening of ties between the governments of Guernsey and the US, and comes after several meetings between Guernsey's chief minister Lyndon Trott and Bob Roach, Senator Levin's chief investigator and counsel, in which Guernsey's financial sector was discussed.

The US senator, a Democrat, has been one of the most vocal critics of offshore financial centres in recent years, pushing for legislation to crackdown on suspected tax evaders.

“I was delighted to be advised this week that Guernsey would no longer be unfairly blacklisted in the Senator’s legislation. The decision to no longer blacklist Guernsey is a major achievement that underscores the importance of having started and continuing the dialogue with politicians and government officials in Washington. We are delighted that our relationship with the United States is not only recognised as important but that it continues to be judged by both governments as a success,” said Trott.

The IRS is “extremely pleased” with Guernsey’s record, due to its “phenomenal co-operation” and willingness to meet on a regular basis with the Tax Attaché at the US Embassy in London, said James Carroll, an official in the IRS overseas operations office.