Wording For Memorial Plaques

limits of Swiss banking secrecy

The current limits of banking secrecy

Switzerland protects the privacy of bank customers with a strong banking secrecy. The Law provides that the owner of bank secrecy is the customer. The bank is the custodian of information about assets and affairs of the client, which is the only person who can authorize the bank to disclose information to third parties.

The AML Law

to this basic rule are applied to certain exceptions. The anti-money laundering compliance requires the bank, in the case of strong suspicion that the customer makes the transaction, to disclose the customer data and its transactions with a government agency.

MROS , this is the name of the Federal Office of Communication on money laundering, it produces every year a report activities. From this report shows that over the past 10 years, Swiss banks have reported an average of 350 to MROS data reports, in 2008 the number of reports has reached 572.

What are the motives for financial intermediaries, including banks, to submit the data to the business relationship? The answer to this question is important, since the communication MROS can lead the bank's customer to have to explain the meaning of its banking transactions to a Swiss public prosecutor.

The motivation for communicate with the authorities against money laundering

During 2008 the ground covered in 26% of cases information from third parties, aware of details in relation to the customer and its activities, in 23% of cases, the information of the mass media, in 15% of cases direct request of the Swiss Attorney General, in 13% of cases the lack of clarity in the financial operations of the customer.

alleged crimes for which communication is enabled are: scam or fraud, including tax (39%), corruption (9%), breach of trust (8%), the proceeds of criminal activities (6%) proceeds from the drug trade (4%), lack of plausibility of the transaction (3%).

Other limits to the protection of banking secrecy

Under the provisions of civil law there are other limits on bank secrecy. These limits are given by the enforcement provisions of the bankruptcy and criminal law. Consequently, the protection offered by banking secrecy may be removed by order of a judge or supervisory authorities, such as the supervisory authority of the grant to investigate possible insider trading.

The exchange of banking information between tax authorities

This type of exchange of information is governed by bilateral tax treaties between two countries. The model for these conventions and standards as defined by the OECD. This model shows how very extensive exchange of information:

The exchange takes place directly between the tax authorities of both countries and can cover a wide range of different information.

Switzerland does not apply the OECD model of information exchange

Switzerland has signed about 70 agreements with many of these states. Unlike the OECD Model provides for Switzerland has opted for a minimum of information exchange, which has been accepted by other countries (including Italy). In practice, these agreements do not provide the exchange of information between tax authorities, this exchange can not take place because the information is protected by bank secrecy.

For example, the Convention against double taxation that Italy and Switzerland committed, still in force, stipulates in its article 27: "They can not be exchanged which would disclose any trade secrets, banking, industrial or professional or business methods."

limits of banking secrecy

Objectively Swiss banking secrecy does not serve to hide the funds of criminal origin.
can serve to hide the proceeds of tax evasion. Of course, only if the taxpayer does not unfaithful is guilty of such crimes as tax evasion or tax fraud.

The non-declaration or tax evasion are not crimes for which the Swiss banking secrecy is lifted, so the money of Italian tax evaders can be safely deposited in Swiss banks, so far.

is possible that in future, the Convention against double taxation that links Italy and Switzerland can be changed. In this case it is possible that a further opening in the Italian banking secrecy may serve the Administration for exposing their infidel taxpayers. But this is music of a remote future, perhaps.


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