Switzerland / UBS / Bank accounts

[SBK1972]

Whats everyones opinion of this matter ?? Reckon UBS will hand over all the names and accounts to the US, and eventually the UK ?

God knows what will happen to the Swiss banking world, as they live on that anonymous banking.

Banking world is in for a BIG change

SBK

[Not So Wise]

Yes they will hand them over (already have handed many over)
It will totally end swiss banking (many of the really rich already moved out)

Other banking centers (especially far east) will take over

It was probably one of the most stupid things the swiss ever did

[SBK1972]

Wont be long before the UK gov demands the same.

I cant see the swiss economy living off choclate, clocks, and tourism.

SBK

[Menelaus]

This is an early example of the world being scared by the word "terrorist".

The original work on anti-money laundering was designed to identify money streams from crime (an OECD body called the Financial Action Task Force http://www.fatf-gafi.org/pages/0,298..._1_1_1,00.html).

Drop the word "terrorist" in there and suddenly everyone sits up and pays attention: even though the probability of Osama and his pals having their money on deposit anonymously in Zurich or elsewhere for that matter is pretty low.

It used to be that anti-semitism was the "bad word" that no-one could say. Today it's terrorism.

[NotAllThere]

Switzerland will continue to be an attractive base for companies to see up business - low taxation, weak employment rights, not in the EU, while being in the middle of Europe.

The loss of banking secrecy will cause some loss of business, but there's more to the Swiss economy than that.

[BlasterBates]

They make more money from legal clients than illegal clients, so plague was preferred over cholera. The US is a "fairly big powerful" country, so they had to agree. Because they're not in the EU they can't veto all the new regulations being dictated to them, so they'll roll over there as well.

[Menelaus]

Switzerland will continue to be an attractive base for companies to see up business - low taxation, weak employment rights, not in the EU, while being in the middle of Europe.

The loss of banking secrecy will cause some loss of business, but there's more to the Swiss economy than that.

Here's a question.

Why aren't the Swiss required to go through the same BS that other non-EU countries are?

[NotAllThere]

Which BS did you have in mind?

[Not So Wise]

It used to be that anti-semitism was the "bad word" that no-one could say. Today it's terrorism.

Except everyone and their dog is saying terrorism

[Lewis]

It is a little more complicated as banking secrecy is enshrined in law in Switzerland (Swiss Banking Act of 1934), i.e. a bank may be breaking Swiss law by sharing information with third parties (such as other countries). There are get out clauses, for example where a fraud has been committed, which is why, the Swiss claim, UBS has been allowed to share information with the US. A law change to remove this would presumably require a referrendum, which may not pass, what then?

I agree that the pressure is definitely on CH but they will resist strongly as their know how important banking secrecy is to them (some groups are even attempting to add banking secrecy to the Swiss constitution) and they have a lot of clout in the world, e.g. Switzerland has $274 billion invested in the US alone.

It will be an interesting battle to watch. I don't think I agree with the ethics of Swiss banking secrecry but I am not sure how easy it will be to bring down. That said, Lichenstein has just signed an agreement to share information with the UK but I guess they are easier to push around than the Swiss.