Swiss banking secrecy: what it still protects today
The legal basis
Swiss banking secrecy rests on art. 47 of the Banking Act, which imposes criminal sanctions for breach of professional confidentiality by a bank employee, officer, or agent. It protects the confidentiality of the relationship between a bank and its client from private third parties and, subject to legal exceptions, from authorities.
What changed with automatic information exchange
Since 2017, Switzerland has applied automatic exchange of information (AEOI) in tax matters with a growing number of partner countries: bank account data of tax residents of these countries is automatically transmitted to the foreign tax authorities concerned, which greatly limits the practical scope of banking secrecy for cross-border tax matters with these states.
What banking secrecy still protects
Banking secrecy retains its full scope with respect to private third parties (a competitor's curiosity, a neighbour's, an unauthorised family member's) and, for Swiss residents or residents of countries not party to AEOI, it continues to limit access to banking information outside the legal procedures provided (mutual legal assistance, criminal proceedings, debt enforcement).
Legal exceptions
Banking secrecy can be lifted as part of Swiss criminal proceedings, an international mutual legal assistance request compliant with applicable treaties, debt enforcement or bankruptcy proceedings, or with the express consent of the client concerned.
Frequently asked questions
Does Swiss banking secrecy still exist?
Yes, but its scope has narrowed since the introduction of automatic exchange of tax information (AEOI) in 2017 with numerous partner countries. It still protects confidentiality with respect to private parties and in situations not covered by AEOI.
Can a bank transmit my data abroad without my consent?
Under automatic information exchange with a partner country, yes, this transmission to the tax authorities of your country of tax residence is automatic and does not depend on your consent.
What does a bank employee risk for breaching banking secrecy?
Criminal sanctions under art. 47 of the Banking Act, which can include a custodial sentence or a monetary penalty depending on the severity of the breach.