Breaking the bank?

Has Swiss banking secrecy reached the point of no return?

This content was published on January 31, 2012 - 15:31

2 minutes

A US probe into Swiss banks allegedly aiding tax evasion by Americans has claimed its first victim. Switzerland’s oldest private bank broke itself up due to the pressure of the US investigation and others have begun to hand over sensitive data.

Should Switzerland continue to fight its corner or bend to the will of the US?

Banking secrecy was enshrined in Swiss law in 1934.

France and Germany launched an attack on Switzerland in October 2008 for allegedly helping foreign tax evaders hide their assets.

The country has been under continuous attack over the issue ever since CDs of stolen bank data were sold to various European countries.

The OECD placed Switzerland on a “grey list” of uncooperative tax havens in April 2009. The Swiss were removed in September after renegotiating several double taxation treaties, but have refused to automatically transfer tax information.

The most damaging tax evasion case against Switzerland involved the activities of UBS bank in the US. In February 2009, UBS was fined $780 million after admitting helping US citizens dodge taxes.

In September 2010, the Swiss government agreed to transfer the details of 4,450 UBS clients to the US – in effect violating Swiss banking secrecy to prevent a ruinous court case for UBS.

Switzerland agreed to ground-breaking withholding tax deals with Germany in August and Britain in October that preserve banking secrecy. But the EC has threatened to take Britain and Germany to court if they implement these deals.

The EC insists on an automatic exchange of information as the basis of tax deals with Switzerland.

Sensitive Swiss bank data handed to US

This content was published on Jan 31, 2012 However, the ministry denied reports that millions of client emails were involved, putting the scale of the transfer at some 20,000 pages “on the US business of the banks”. Full access to the information, with names of client advisors, will only be provided on a case-by-case basis or when a tax agreement is in place…

US tax “ultimatum” has Swiss banks sweating

This content was published on Dec 21, 2011 Swiss newspapers claim the deadline for the US ultimatum passed on Tuesday night. However, banks are keeping tight lipped over claims that they would also have to provide all correspondence with offshore clients over the past 11 years. The Department of Justice (DoJ) has been steadily closing a net around Swiss banks ever since UBS…

Public outcry “set to topple banking secrecy”

This content was published on Dec 5, 2011 The global economic crisis has triggered a public outcry against tax havens which is here to stay, journalist and author Nicholas Shaxson told swissinfo.ch. Shaxson believes that Switzerland – and other global tax havens – cannot resist the rising tide of sentiment against the illicit offshore financial system for much longer. The only question is…

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Bank it

This content was published on Nov 3, 2011 His journey takes us to the heart of a $7,000 billion secret. The Swiss hold a third of all global offshore assets, shored up by conservatism and strict banking secrecy laws. With half of this market, just two banks – UBS and Credit Suisse – dominate the heart of the banking sector.

Banking secrecy

This content was published on Feb 27, 2009 The Swiss banking secrecy crisis seen by cartoonists from Switzerland and elsewhere.

Breaking the bank?

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