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| Version 1 | Version 2 |
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| Switzerland eases banking secrecy | Switzerland eases banking secrecy |
| (20 minutes later) | |
| Switzerland, Austria, and Luxembourg have become the latest countries to agree concessions on bank secrecy. | Switzerland, Austria, and Luxembourg have become the latest countries to agree concessions on bank secrecy. |
| Their agreements come after talks with the Organisation for Economic Co-operation and Development (OECD), which sets rules on bank data sharing. | Their agreements come after talks with the Organisation for Economic Co-operation and Development (OECD), which sets rules on bank data sharing. |
| Liechtenstein and Andorra agreed similar OECD deals on Thursday. All had come under increasing pressure to reform their banking sectors. | Liechtenstein and Andorra agreed similar OECD deals on Thursday. All had come under increasing pressure to reform their banking sectors. |
| Last month Swiss bank UBS gave the US details of 300 of its American clients. | Last month Swiss bank UBS gave the US details of 300 of its American clients. |
| Key global meeting | Key global meeting |
| The agreements were announced ahead of a meeting of finance ministers and central bank governors from the G20 group of industrialised nations, which is due to start at a venue near London later. | The agreements were announced ahead of a meeting of finance ministers and central bank governors from the G20 group of industrialised nations, which is due to start at a venue near London later. |
| The private sphere of clients is still protected from unjustified watching from abroad Swiss government | |
| The meeting is likely to focus on the need for tougher regulation of banks, and discuss increasing funding to tackle the crisis. | The meeting is likely to focus on the need for tougher regulation of banks, and discuss increasing funding to tackle the crisis. |
| The Swiss government said it would now co-operate with the OECD on cases of international tax evasion. | The Swiss government said it would now co-operate with the OECD on cases of international tax evasion. |
| This is the first time Switzerland has agreed to sign up to the OECD rules, having previously stated that it would compromise its long-standing banking secrecy rules. | This is the first time Switzerland has agreed to sign up to the OECD rules, having previously stated that it would compromise its long-standing banking secrecy rules. |
| 'Maintaining secrecy' | |
| The Swiss government said in a statement that any exchange of banking information with other countries would be done "case by case", and on the basis of "concrete and justified" requests. | |
| WHAT IS A TAX HAVEN? Low or no taxationLack of transparencyRefusal to provide information to foreign tax authorities Source: OECD | |
| Yet it insisted that the acceptance of OECD rules would not affect the country's basic banking secrecy principles. | |
| It said Switzerland was "maintaining banking secrecy and resolutely refused all automatic transmission of information". | |
| "The private sphere of clients is still protected from unjustified watching from abroad," it said. | |
| Switzerland is the world's biggest offshore financial centre, and it is estimated that its banks hold $2 trillion (£1.4tn) of global wealth held abroad. | |
| USB row | |
| It remains to be seen what impact the Swiss government's change of position will have on UBS and its continuing talks with US authorities. | It remains to be seen what impact the Swiss government's change of position will have on UBS and its continuing talks with US authorities. |
| While UBS has given the US details of 300 American account holders, it has so far rejected a request to hand over details of 52,000 people in total. | While UBS has given the US details of 300 American account holders, it has so far rejected a request to hand over details of 52,000 people in total. |
| US officials are investigating whether the 52,000 have been avoiding paying tax illegally. | US officials are investigating whether the 52,000 have been avoiding paying tax illegally. |
Should | It is estimated that the US government loses $100bn in revenues every year because of tax havens. |
Should banks face tougher legislation on data sharing? Does this compromise client confidentiality? Send us your views. |