Swiss banking secrecy protects the privacy of bank clients. But its validity is not unlimited. If there are suspicions of criminal activities such as terrorism, organized crime, money laundering or tax fraud, it is lifted – and the authorities are given access to banking information.

Based on newly concluded double taxation agreements Switzerland also commits itself to exchange information in individual cases with partner states following a specific and justified request, not contingent upon the existence of a tax offence.

In addition, tax evasion is countered by means of a 35% withhholding tax and other measures (e.g. as part of the tax-assessment procedure). This withhholding tax is the highest of all the member countries of the Organisation for Economic Cooperation and Development (OECD). One loophole has been closed by the agreement with the European Union (EU) on the taxation of savings interest. This imposes a tax retention on all interest income from foreign sources accruing to natural persons resident for tax purposes in an EU member state.

No anonymous accounts exist in Switzerland. The bank is obliged to know the identity of the account holder, and of the actual financial beneficiary if applicable.

Banking secrecy exists in many other countries. The Luxembourg and Austrian systems are closest to Switzerland.