Banks’ Data Exchange Halts Era of Bank Secrecy

Banks’ Data Exchange Halts Era of Bank Secrecy
Switzerland, for long the world capital of unreported wealth, has begun automatically sharing bank account data with dozens of tax authorities in a move calculated to crack down on tax evasion and tax fraud, reports say.

Tax Evasion on the Line as Swiss Banks Start Sharing Client Data

Swiss bank accounts have controversially facilitated the diversion of public funds to the private vaults of government officials, and also allowed companies to escape democratic scrutiny. Along with emerging offshore havens such as Panama, Singapore and Hong Kong, the Swiss facility has attracted public disaffection for allowing leaders, corporates and wealthy individuals to withhold obligations to their communities.

Responding to global pressure to cut back on tax evasion, Switzerland’s Federal Tax Administration (FTA) announced October 5 that it had started disclosing client financial account information beginning end of September, according to a report.

Data Shared With 37 Countries
The initial batch of data for about two million accounts was sent to the 28 countries in the European Union, and to Australia, Canada, Guernsey, Iceland, Isle of Man, Japan, Jersey, Norway and South Korea. The information, drawn from 7,000 banks, insurers and other financial institutions, includes details on “owner’s name, address, country of residence and tax identification number as well as the reporting institution, account balance and capital income,” said the report.

Tax Evasion on the Line as Swiss Banks Start Sharing Client Data“This lets authorities check whether taxpayers have correctly declared their foreign financial accounts,” it noted, adding that the deal is expected to expand to cover around 80 countries worldwide in the coming months, as long as they adhere to requirements on privacy and account information security.

Data sharing has been delayed in France and Australia “as these states could not yet deliver data to the FTA due to technical reasons.” Poland, Croatia and Estonia are still outstanding as well