Switzerland, other tax havens agree to ease banking secrecy rules

13 March 2009

Switzerland has agreed to ease the country's strict banking secrecy rules and cooperate with foreign tax authorities in cases where fraud is suspected even as other tax havens like Austria, and Luxembourg said they would consider easing secrecy laws on a case-to-case basis.

Switzerland's announcement comes after it risked being added to a global blacklist of uncooperative tax havens, that currently groups countries like Andorra, Liechtenstein and Monaco.

Switzerland's banks are estimated to hold $2 trillion of global wealth held abroad.

The agreement comes after talks with the Organisation for Economic Co-operation and Development (OECD), which sets rules on bank data sharing.

Luxembourg and Austria said they would relax their banking secrecy laws and cooperate with foreign tax authorities in cases where fraud is suspected.

"Luxembourg is in favour of exchanging information on demand but only in precise cases and with clear proof" of suspicion of fraud, treasury and budget minister Luc Frieden told reporters.