The Swiss Senate has approved the legislation known as the Foreign Account Tax Compliance Act (FATCA) on 23 September, allowing Swiss banks to provide information about United States clients to the US tax authorities, according to swissinfo.
The deal is designed to put an end to the tax dispute between the two countries, but it will only apply to future accounts held by US citizens in Swiss banks.
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The Swiss House of Representatives have voted in favour of the legislation earlier this month and it can now only be opposed if it is rejected in a poll by the Swiss people as a whole.
Many Swiss banks still face legal action in the US over accounts opened in the past by US citizens to hide their wealth from the tax authorities.
The Senate had given its initial approval to the bill in June, but had to vote again in order to review a technical detail.
The FATCA bill will be implemented in stages starting in July 2014. That is later than previously planned, mainly because the US needs more time.
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