Switzerland moves to end banking secrecy 

Today, the Federal Department of Finance (FDF) initiated the consultation on introducing the automatic exchange of information (AEOI) in tax matters with a series of other countries. The AEOI with these countries should enter into force on 1 January 2018 so that data can start to be exchanged in 2019. The consultation will last until 15 March 2017.

This series of other countries includes: Andorra, Argentina, Barbados, Bermuda, Brazil, the British Virgin Islands, the Cayman Islands, Chile, the Faroe Islands, Greenland, India, Israel, Mauritius, Mexico, Monaco, New Zealand, San Marino, the Seychelles, South Africa, the Turks and Caicos Islands and Uruguay. The introduction of the AEOI with these countries confirms Switzerland’s international commitment to implementing the AEOI standard. Switzerland is thus extending its network of AEOI partner states. This will contribute to strengthening the competitiveness, the credibility and integrity of Switzerland’s financial centre. Important criteria for the acceptance of these other countries were in particular the high demands in terms of adherence to the principle of speciality and the safeguarding of confidentiality for the data delivered, which are prerequisites for the introduction of the AEOI.

From a legal viewpoint, the automatic exchange of information with these countries will be implemented based on the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA). The MCAA is based on the international standard for the exchange of information developed by the OECD.

Switzerland will introduce the AEOI already in 2017 with all of the EU states including Gibraltar and with Australia. The same applies to Iceland, Norway, Japan, Canada, South Korea and the British crown dependencies of Jersey, Guernsey and the Isle of Man. The entry into force of the AEOI with these countries and territories  is conditional on approval by Parliament in the 2016 winter session.

Source: Swiss Federal Department of Finance

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