The Swiss government has agreed to allow banks hand over data to US authorities without facing criminal sanctions under Swiss law in a bid to avert US charges against its banks.
In a statement, the governing Federal Council said that banks wishing to hand over information would be able to seek authorization from the Swiss government on an individual basis, "within the scope of existing law and particularly data protection and employment law provisions."
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
However, the plan doesn’t allow Swiss banks to pass client information on to US authorities. It just permits banks to provide information on accounts that were moved to other institutions, as well as details regarding bank personnel, attorneys and accountants.
The plan also calls for protection of bank employees and third parties.
The Swiss Bankers Association hailed the plan, saying in a statement that it "will finally create legal certainty" for bank efforts to comply with US information demands without violating Swiss law."
Swiss Parliament last month voted down a bill that would have enabled the transfer and established more legal protection for bank employees.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe decree, dubbed plan B by politicians, comes after Wegelin & Co. pleaded guilty in January to helping Americans dodge taxes.
About a dozen Swiss banks are facing criminal investigations in the US on suspicion of helping Americans dodge taxes, and hundreds more have similar problems that may have to be addressed.
