Should Switzerland hold tight and stand firm when it comes to banking secrecy, or should it introduce the automatic exchange of client data, thereby signaling an end to the country’s hallmark practice?
For years, the Swiss financial sector has been under pressure from abroad. Banking secrecy and Swiss banks’ role in tax evasion have been at the heart of that pressure, especially from the US.
Switzerland would like to solve the problem with a withholding tax, but it’s been unable to broadly implement such a model. Demands for the automatic exchange of client data are in the air. Is there a way out of the crisis?
Cure-all or end-all?
To preserve its financial sector, should Switzerland launch a counter-attack asserting its sovereignty or take an active role in reducing the international pressure on banking secrecy? There are two main schools of thought on the matter. [...]