Switzerland’s upper house of parliament has voted in favour of a bill that will allow Swiss banks to hand over information to the US authorities to settle a dispute over tax evasion.
Twenty-four members of the Council of States voted in favour of the so-called ‘Lex USA’ deal, while 15 opposed to it, and two abstained.
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For the bill to come into force, it must now be cleared by Switzerland’s lower house, or National Council, that is expected to vote next week.
The US side aims to have the deal in force by July 1.
The approval from the country’s upper house comes after a Swiss parliamentary committee rejected the proposed bill on 11 June, as reported by PBI.
The Swiss parliament also previously halted the bill saying it needs to "know more" about what the deal entails.
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Bill details
The bill will allow banks to sidestep secrecy laws and to strike settlements with US prosecutors, expected to include heavy fines which might amount to US$10 billion for the whole industry.
The proposed bill will not provide the names and account details of the Swiss banks’ clients but will allow the sharing of information on their behaviour.
Swiss banks suspected of helping wealthy Americans hide their money will have 120 days, if the draft law succeeds, to hand over the internal information to US authorities.
Pressure mounting
Fourteen Swiss banks have found themselves in US investigators’ sights for aiding Americans evade taxes, including Credit Suisse, Julius Baer, and UBS.
In 2009, UBS was forced to pay a fine of US$780 million and deliver the names of more than 4,000 clients to avoid indictment, giving the US authorities information that allowed them to pursue other Swiss banks.
In January 2013, Wegelin & Co, Switzerland’s oldest private bank, said it would shut its doors following a US indictment on charges of helping wealthy Americans evade taxes through secret accounts. Wegelin later pleaded guilty, admitted wrong-doing and paid US$58 million to US authorities.
