Banking
Switzerland
Switzerland remains one of the most important banking centers in the world. It has a long history and tradition of financial privacy, which can be traced back to the Middle Ages. The Swiss Constitution, the Banking Law, and the Penal Code provide a solid legal foundation for maintaining the strict standards of confidentiality.
As a practical matter, Swiss banks and their employees do not disclose information except by direct judicial order. This practice applies to requests for information by individuals, foreign governments, the Swiss government, and to other banks. An employee who even acknowledges the existence of an account is in violation of the law.
Cooperation in Criminal Matters
In recent years, there has been a shift in the absolute secrecy policy in response to international pressures from the U.S. and other countries. In cases which involve requests for information from foreign governments concerning a serious criminal offense, the Swiss may cooperate in supplying the requested bank records. The foreign government must first show that a particular individual committed one of the enumerated crimes, which is also an offense in Switzerland. It must then present evidence that the individual has used an identified bank for transactions, which are associated with the crime. If the proof is determined to be satisfactory, the bank will be required to turn over records regarding the specific transactions involved. Account records not related to the transactions will not be disclosed.
Consistent with this new spirit of responsiveness but much to everyone’s surprise the Swiss Government froze the accounts of exiled Philippine dictator Ferdinand Marcos and deposed Haiti ruler François "Papa Doc" Duvalier when the new governments began an effort to retrieve looted funds, which had been stashed in Switzerland. The official policy of the Swiss banks is now to refuse deposits from political leaders when the source of...
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