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 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'
'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.
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
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.
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".
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.
"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.
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
UBS 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.
It is estimated that the US government loses $100bn in revenues every year because of tax havens.
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.
Should banks face tougher legislation on data sharing? Does this compromise client confidentiality? Send us your views.
