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| Switzerland eases banking secrecy | Switzerland eases banking secrecy |
| (10 minutes later) | |
| Switzerland, the world's largest offshore financial centre, has agreed to accept concessions on bank secrecy. | Switzerland, the world's largest offshore financial centre, has agreed to accept concessions on bank secrecy. |
| However, while it will now abide by international rules on bank data sharing, it said it would only respond to "concrete and justified" requests. | However, while it will now abide by international rules on bank data sharing, it said it would only respond to "concrete and justified" requests. |
| The government added that it would still protect banking customers from "unjustified watching from abroad". | The government added that it would still protect banking customers from "unjustified watching from abroad". |
| Switzerland's announcement comes after it had risked being added to a global blacklist of uncooperative tax havens. | Switzerland's announcement comes after it had risked being added to a global blacklist of uncooperative tax havens. |
| This list currently comprises Andorra, Liechtenstein, and Monaco. | This list currently comprises Andorra, Liechtenstein, and Monaco. |
| OECD talks | OECD talks |
| It is estimated that Switzerland's banks hold $2 trillion (£1.4tn) of global wealth held abroad. | It is estimated that Switzerland's banks hold $2 trillion (£1.4tn) of global wealth held abroad. |
| The Swiss government has finally bowed to intense pressure from Washington and Brussels BBC Geneva correspondent Imogen Foulkes class="" href="/1/hi/business/7901832.stm">Clock ticking for Swiss secrecy | |
| It reached its agreement overnight with the Organisation for Economic Co-operation and Development (OECD), which sets rules on bank data sharing. | It reached its agreement overnight with the Organisation for Economic Co-operation and Development (OECD), which sets rules on bank data sharing. |
| This is the first time it has agreed to sign up to the OECD rules, having previously stated that it would compromise its long-standing banking secrecy principles. | This is the first time it has agreed to sign up to the OECD rules, having previously stated that it would compromise its long-standing banking secrecy principles. |
| Andorra, Liechtenstein, Austria and Luxembourg have also just agreed to sign up to the OECD rules. | Andorra, Liechtenstein, Austria and Luxembourg have also just agreed to sign up to the OECD rules. |
| All had come under increasing pressure to reform their banking sectors. | All had come under increasing pressure to reform their banking sectors. |
| 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. |
| 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 |
| 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 in a statement that any exchange of banking information with other countries would be done on a "case by case" basis. | The Swiss government said in a statement that any exchange of banking information with other countries would be done on a "case by case" basis. |
| It insisted that the acceptance of OECD rules would not affect the country's basic banking secrecy principles. | It insisted that the acceptance of OECD rules would not affect the country's basic banking secrecy principles. |
| 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", it said. |
| "The private sphere of clients is still protected from unjustified watching from abroad," it added. | "The private sphere of clients is still protected from unjustified watching from abroad," it added. |
| Imogen Foulkes, the BBC's Geneva correspondent, said "the Swiss government has finally bowed to intense pressure from Washington and Brussels". | Imogen Foulkes, the BBC's Geneva correspondent, said "the Swiss government has finally bowed to intense pressure from Washington and Brussels". |
| "The decision is all about damage limitation - Swiss banks may well lose yet more wealthy international clients, but the government hopes its new willingness to cooperate in cases of tax evasion will lift the threat of the black list," she said. | "The decision is all about damage limitation - Swiss banks may well lose yet more wealthy international clients, but the government hopes its new willingness to cooperate in cases of tax evasion will lift the threat of the black list," she said. |
| "It's a small but very important change in Swiss banking regulations - and a little piece of Swiss tradition is now history." | "It's a small but very important change in Swiss banking regulations - and a little piece of Swiss tradition is now history." |
| UBS 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. |