Swiss Banks to Share Customers’ Bank Account Information for Tax Fraud Transparency
Swiss Banks To Stop Start Sharing Client Data
Switzerland, for long the world capital of unreported riches, has started consequently sharing bank account data with many tax authorities in a move figured to take action against tax evasion and tax extortion.
The Federal Tax Administration (FTA) said on Friday it had for the first time exchanged financial account data at the end of September under global standards that aim to crack down on tax cheats.
Bank secrecy still exists in some areas, Swiss authorities cannot automatically see what citizens have in their domestic bank accounts, for example, but gone are the days when well-paid European professionals could stash wealth across the border and beyond the inquisitive eyes of their tax man.
Swiss bank accounts have questionably encouraged the redirection of open funds to the private vaults of government officials, and furthermore enabled organizations to escape majority rule investigation. Alongside rising seaward havens, for example, Panama, Singapore, and Hong Kong, the Swiss office has pulled out in the open antagonism for permitting leaders, corporates and wealthy people to withhold commitments to their networks.
The opening 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.
Notably, this arrangement does not include African countries, whose poorest have suffered due to the externalization of funds by corrupt leaders and corporate beneficiaries of sweetheart contracts. The bulk of the illicit flows are allegedly facilitated by European banks, particularly those in Switzerland.
According to an African Union-commissioned report, $60 billion in illicit financial flows leaves Africa through looting and tax evasion every year – no mean figure for a continent that must be addressing underdevelopment and improving citizens’ wellbeing