Pressure on Switzerland still not effective, banking secrecy remains

Since the time when the country was included into the “grey list” of tax haven countries by the OECD and under the pressure of the G20, Switzerland has been considering the ways of making the banking transparent and ratification of tax agreements so as to conform to OECD standards on information exchange. Taking of such routes by Switzerland may imply to the departure of the country from its traditional banking secrecy. The urge of Swiss industrialists for obedience with OECD standards and fear of not being able to compete in international markets can be mentioned as grounds for departure.  

Despite any moves towards adherence to OECD standards, Swiss banking secrecy has been stated as the rule by Switzerland's President and Finance Minister Hans-Rodolf Merz in an interview with the Frankfurter Allgemeine Zeitung newspaper. "As far as banking secrecy itself, nothing has changed compared with the past, nothing will be eased," Merz told. The similar view was expressed by a newly appointed chairman of Swiss Bankers Association, Patrick Odier.

In addition to 6 countries with which Switzerland has signed agreements on avoidance of double taxation, 23 countries have encouraged Switzerland to abandon its banking secrecy by expressing their readiness to renegotiate accords on double tax imposition.  

President Merz noted the desire of Singapore, Dubai and Saudi Arabia to adhere to the OECD rules after discussion with mentioned countries and said that he was concerned about abuse by European financial centres following Switzerland’s decision to conform to OECD regulations.