Secrecy still remains the key to the Swiss account.
| Fonction | Includes related article on costs of Swiss private banking and asset management - Swiss bank secrecy |
Frequently asked questions about Swiss bank secrecy. What it means for the customer
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What is banking confidentiality?
In broad terms, banking confidentiality is the banker's professional obligation to keep the details of a client's financial and personal affairs strictly private. Confidentiality is a matter of both contractual agreement and public duty. Under Swiss law, violating this professional obligation is subject to criminal prosecution. Other laws, such as those which protect privacy, safeguard confidentiality as well. Art 47 of the Swiss Banking Act provides for criminal sanctions (imprisonment for no longer than six months or a fine of not more than Sfr50,000) against anyone who divulges confidential information entrusted to him or of which he has become aware in his capacity as an officer or employee of a bank, and against anyone who tries to induce others to violate professional confidentiality.
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Why does Switzerland have banking confidentiality?
Banking confidentiality is not unique to Switzerland. The idea of confidentiality in financial affairs was already incorporated into ancient law. Since the mid-19th century, virtually all the governments of Western Europe have had banking confidentiality laws. In Switzerland, banking confidentiality legislation was enacted in 1934 as part of the Swiss federal banking law. It was designed to preserve the confidentiality and privacy of bank customers and to help people who were persecuted for racial, political, or religious reasons.
The fact that banking confidentiality in Switzerland is enforced by criminal prosecution is not unique either. Many countries, such as Austria, Denmark, Finland, France, Luxembourg, Mexico, the Netherlands, Norway, Portugal, and Sweden, also provide for criminal sanctions for breaching the obligation of confidentiality.
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What does banking confidentiality protect?
Banking confidentiality protects the individual privacy of the customer, not the bank.The customer has control over whether or not his or her account information should be kept confidential and can waive that right if he or she so chooses.The range of information covered by banking confidentiality is broad. It covers all activities that involve banking and, in particular, information on customers and third parties. Under the banking confidentiality rules, for instance, a bank is not allowed to certify that somebody has or has not been a customer of the bank.
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Is banking confidentiality absolute?
Swiss banking confidentiality is in no way absolute. Since banking confidentiality derives from a contractual agreement, it can be lifted whenever the customer so chooses...
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