The continuation of the bank story between the United States and Switzerland

30.08.2013

As we remember, in the beginning of June 2013, as a part of combating measures against tax evasion, in Switzerland there was a wave of discussions about providing of customer information by local banks to the United States.

As a result, on the 29 day of August the governments of the mentioned countries declared their mutual consent in the agreement which will regulate their relations in the banking issue.

The U.S. government has developed a special program under which banks in Switzerland are divided into 4 categories:

Category 1 - the banks against which the initiation of criminal case have been commenced

Category 2 - banks which have reasons to thing that they have violated U.S. laws. This category of banks can obtain previously the individual permission from the Swiss authorities to use a special program of the United States.

Category 3 - banks, which did not have U.S. clients

Category 4 - banks which have only local operations with U.S. clients.

The last two categories have the opportunity to get a letter, which will state that the U.S. Government had no claims against them.

The essence of the program is to close all accounts of U.S. clients, which were previously opened with certain violations. Subsequently (until 31 day of December 2013) it will be necessary to pass a list of accounts and the sums to the U.S. government. Lists should not contain the owners’ names. Also, banks will have to pay penalties which depend on the date of account opening.

Based on:www.admin.ch

Expert’s opinion

As was to be expected - America as always counts itself at the center of everything and dictates the rules of the game. In addition to the huge punitive sanctions and the loss of investors’ confidence around the world to Swiss banking secrecy, there is no some positive trends.

However, it remains to be seen that Switzerland will rise from its knees and restore, maybe not all, but in some extent, everything what was wasted over the past years. Then the trust, the desire to maintain and enhance the assets in this quiet country will return, and the most importantly – the return of bank secrecy, which for centuries, as well as Swiss chocolate, attracted and guaranteed confidentiality for clients.

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)