Download - Swiss Bank Laws
-
8/13/2019 Swiss Bank Laws
1/12
-
8/13/2019 Swiss Bank Laws
2/12
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
2
-
8/13/2019 Swiss Bank Laws
3/12
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
-
8/13/2019 Swiss Bank Laws
4/12
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
4
-
8/13/2019 Swiss Bank Laws
5/12
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
-
8/13/2019 Swiss Bank Laws
6/12
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
6
-
8/13/2019 Swiss Bank Laws
7/12
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
7
-
8/13/2019 Swiss Bank Laws
8/12
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
8
-
8/13/2019 Swiss Bank Laws
9/12
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
-
8/13/2019 Swiss Bank Laws
10/12
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
10
Limitations Bank Secrecy
-
8/13/2019 Swiss Bank Laws
11/12
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 -
8/13/2019 Swiss Bank Laws
12/12