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History Over 300 years First known dates back to 1713 Until 1934, civil and labor code

1934, criminal domain Why?

Nazi Spies Pressure from French

1984, Swiss elected by overwhelming majority in favorof maintaining bank secrecy

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The wiss universal bank

offers credit/lending business asset management and investment advice payment transactions deposit business (savings accounts, etc.) securities business (stock exchange transactions)

underwriting business (issuing of bonds) financial analysis

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Legislation Banking Act of 1934 Codified 8 November 1934 Privacy is statutorily enforced Swiss law strictly limiting any information shared with third

parties, including tax authorities, foreign governments or evenSwiss authorities, except when requested by a Swiss judgessubpoena

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Key Provisions Regulated by both civil law and criminal law 2 Articles of the Swiss criminal code regulate Swiss bank

secrecy: Article 162 takes punitive action against the disclosure of trade

secrets or confidential business information. Article 320 deals with occupational confidentiality.

Article 98 al. 2 of the Swiss Labor Code Anyone who contravenes an obligation to abstain from action owe

damages by the very fact of contravention 5

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Key Provisions Article 47 of the Swiss Federal Banking Act of 8 November 1934

Reveal = Imprisonment of 6 months or 50,000 francs Negligence = 30,000 francs Termination = Still Punishable Provisions of federal and cantonal legislation to be obligated to inform

authorities and testify in court

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Major Problems

The Swiss do not feel it is their position to be the global babysitter Swiss banks are not just institutions in which money is

stored. The banking industry accounts for 10% ofSwitzerlands GDP, so they are heavily invested inmaintaining their clients satisfaction

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Tax Evasion

Failure to declare earnings of non-Swiss citizens (taxevasion) is not a crime in Switzerland, and thereforeSwiss banks see no reason to offer information

Sharing client information with other parties, where nocrime is suspected, is an offence under Switzerland's

banking laws

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Swiss bank accounts are

used by

Corrupt Government officials Millionaires Criminals to hide ill-gotten wealth Middle class people People staying in countries with unstable government

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Exceptions Regulated by Law Criminal Matters

Drug Trafficking Gun Smuggling

Private Matters Inheritance Divorce Bankruptcy

Rare

In terms of divorce orinheritance, plaintiff faceslong, difficult, and costly

procedure. No undertaking has been

successful Bankruptcy falls under

Federal law

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Limitations Bank Secrecy

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Financial market laws of the

Swiss Federal Assembly Swiss Federal Law of 8 November 1934 on Banks and SavingsBanks (Banking Act, BA)

Swiss Federal Act of 24 March 1995 on Stock Exchanges andSecurities Trading (Stock Exchange Act, SESTA)

Swiss Federal Act of 23 June 2006 on Collective InvestmentSchemes (Collective Investment Schemes Act, CISA) Federal Act of 10 October 1997 on Combating Money

Laundering and Terrorist Financing in the Financial Sector (Anti-Money Laundering Act, AMLA)

Mortgage Bond Act of 25 June 1930 (MBA)

Swiss Federal Act of 17 December 2004 on the Supervisionof Insurance Companies (Insurance Supervision Act, ISA) Swiss Federal Act of 2 April 1908 on Insurance Contracts (Insurance

Contract Act, ICA)

http://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Terrorist_Financinghttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Terrorist_Financinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Savings_and_loan_association

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