Swiss Bank Secrecy

About Swiss Bank Secrecy

The Swiss Banking Law of 1934 made it a criminal offense to reveal bank client information. This secrecy made Switzerland the worlds largest offshore financial center. Swiss banks held an estimated 2.1 trillion in offshore assets by 2008. The secrecy law was originally passed to protect German Jews from Nazi confiscation, but it evolved into a tool for global tax evasion. The OECD and G20 pressured Switzerland to share tax information. In 2009, UBS agreed to turn over 4,450 client names to the US government. In 2013, Switzerland agreed to automatic exchange of tax information with foreign governments. Swiss bank secrecy has been significantly weakened but has not been entirely eliminated. The shift has reduced Swiss offshore banking but has not ended global tax evasion.