Banking secrecy is not an erratic block within the swiss legal system but rather an aspect. During the 1940s, numbered bank accounts were introduced creating an enduring principle of. Swiss banking secrecy was first codified with the banking act of 1934, thus making it a crime to disclose client information to third parties without a clients consent. Regulated by the swiss financial market supervisory authority finma, swissquote bank ltd is the leading online bank in switzerland since 2000. This article traces the crucial phases of its development. It is guaranteed since 1934 by article 47 of the federal law on banks and savingbank. In contrast to the draft outsourcing circular which has been published by finma in december 2016, the final version of the. A person commits tax fraud who, for the purpose of tax evasion and misleading the tax authorities, uses false or falsified documents or documents with untrue.
Switzerland banking secrecy is one of the main features of swiss policy on individual economic freedom and personal privacy. In 1997, a night watchman at a bank in zurich took documents that contained account. This indicator assesses whether a jurisdiction provides banking secrecy. Past, present and future of swiss bank secrecy the topic of swiss bank secrecy always attracts massive attention of politicians, bankers, lawyers etc. Those disclosing customer data in violation of this provision face criminal penalties see enforcement and penalties. In legal terms, banking secrecy is a professional secrecy obligation, like the medical secret. In switzerland, swiss banking law prohibits banks from transmitting information about their clients to a third person.
Throughout history in particular in world war ii swiss banking secrecy has proved. Article 47 of the swiss federal act on banks and savings banks amended 2016 banking act, is the primary law governing bank secrecy in switzerland. The origins of the swiss banking secrecy law and its. As a consequence, clients of banks in such secrecy jurisdictions can. Whistleblowing is not a new phenomenon in the swiss banking industry3, but it has. Its famed banking secrecy laws are still functional though the move towards automatic tax information. The federal banking commission fully supports our governments position that the core content of bank customer secrecy is not negotiable, which in essence means that it will not be disclosed in tax matters, except for tax fraud. The origins of the swiss banking secrecy law and its repercussions for swiss federal policy for all its notoriety and controversial character, the history of swiss banking secrecy remains largely unexplored. Swiss banking secrecy has old and deep roots, based on three foundations.
Its banking secrecy is targeted, in particular, by neighboring. Note relating to the lifting of banking secrecy note relating to the lifting of banking secrecy. Switzerland banking secrecy is part of a long standing tradition based on the principle that bank professionals must keep all financial and the personal circumstances of all business and affairs of swiss banking clients, persons or companies like nevis ibc, in the highest confidence. Marie lamensch 5 1 introduction the development of swiss banking secrecy1 banking secrecy, broadly speaking, consists of keeping information concerning bank clients out of the reach of third parties, whether they are private or governmental. The analysis is limited to the criminal law aspects of banking secrecy art.
Bank customer secrecy protects bank customers and their privacy. Switzerland financial secrecy index tax justice network. Although the term bank secrecy is commonly used to describe swiss banking discretion laws, experts generally use the more accurate term bank customer secrecy. Banking secrecy financial secrecy index tax justice network. In the recent time, there are several movements on international level in direction of a wider transparency regime, which was called forth particularly with the oecd. Swiss bank secrecy laws aim to protect bank customers and their privacy. Swiss bank secrecy and cloud legal opinion laux lawyers ag. Swiss bank transactions involving foreign citizens from certain. Swiss banking secrecy withstood international criticism for several. The law, coupled with a stable swiss currency and international neutrality, prompted large capital flight to private swiss accounts. It reveals that the maintenance and reinforcement of banking secrecy represented a major objective of swiss authorities.
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