Data-swapping standards also need to be properly and ethically applied by countries whose legal systems – to put it politely – can only be described as archaic, according to an outspoken veteran Swiss banker.
Hans Syz aired his views as chairman of Zurich-based Bank Maerki Baumann, which Thursday announced a doubling of profits last year, new money inflows and the successful clearing of old debts.
However, Syz noted in the earnings report that it wasn't only good news which the bank had to present. The ongoing importance of banking to the Swiss economy continues to be talked down or even ignored. In the complicated dealing with foreign countries, Swiss banks can mostly only rely on limited goodwill from some of these governments, he said.
Delicate Data
Syz noted that in the past year little progress had been made as far as getting market access to the European Union for Swiss private banks, even though the presence of international banks in the Swiss financial centers remains so high.
«I must also add my concern that the required implementation AEoI standards also needs to applied by countries whose legal frameworks – to put it politely – can only be described as archaic», he said. «It cannot be that sensitive client data ends up in the possession of regimes where tax compliance is barely adhered to…»
Rethink Needed
It is incomprehensible that data protection inside Switzerland – quite rightly in his view – should be taken seriously, while at the same time efforts by our officials in other countries for access to client data are handled so generously, Syz added.
Thus banks are often forced to resort to the legal option, where they are usually successful in court. «We need a change of thinking here by officials», Syz stressed. «We must do all that needs to be done to uncover tax fraud. But wide ranging intrusion into the privacy of clients must be prevented, and if necessary, pursued.»
