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August 29, 2014updated 04 Apr 2017 2:02pm

Swiss banks lost CHF350 billion after tax evasion probes

Swiss banks have lost CHF350 billion in outflows from overseas clients over the past six years following an increased investigations and global crackdown on offshore tax evasion, according to a report by PricewaterhouseCoopers (PwC).

By Verdict Staff

Swiss banks have lost CHF350 billion in outflows from overseas clients over the past six years following an increased investigations and global crackdown on offshore tax evasion, according to a report by PricewaterhouseCoopers (PwC).

According to PwC, international clients have withdrawn nearly CHF100 billion to pay fines to their respective governments and authorities.

Additionally, as much as CHF250 billion was transferred or sent back to other financial institutions.

Switzerland’s private banking sector has been facing unprecedented scrutiny from tax authorities in the US and Europe.

The regulatory authorities in the US have investigated about a dozen Swiss banks including UBS and Credit Suisse over their alleged role in helping American clients dodge taxes.

However, another 100 Swiss banks have agreed to participate in a US Justice Department voluntary disclosure program at the end of last year.

Recently, Indian government has made major breakthrough in retrieving black money stashed in secret Swiss account when 100 account holders agreed to furnish details of their holdings for lesser penal action for evasion.

Apart from US and Europe, countries such as the UK, France, Germany and Italy have also launched investigations aiming to get back undeclared funds stashed offshore.

PwC said: "The Swiss private banking centre has faced enormous challenges since 2008. The banks will be able to attract net new money if they succeed in bringing regularized assets back to Switzerland by emphasizing their high-quality service and strong performance."

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