The «Suisse Secrets» reports show a distorted picture. There seems to be little thought behind the accusations, writes Joerg Gasser, CEO of the Swiss Bankers Association, in a guest post for finews.com.

By Joerg Gasser, CEO of the Swiss Bankers Association

Foreign media are portraying Swiss finance in a cliched light with the «Suisse Secrets» reports. Important facts are being left out. At best, they are mentioned in passing. The fact is that Switzerland has consequently implemented international standards and that it has strict regulations to prevent money laundering and terrorism finance. Money laundering defenses have been enhanced and sharpened constantly in the past few years based on recommendations by the Financial Action Task Force (FATF).

Banks have comprehensive due diligence and reporting responsibilities related to the prevention of money laundering and financial crime. Many of them have made significant investments in compliance measures in recent years and they now have comprehensive controls and processes to fulfill those responsibilities and prevent wrongdoing.

Political Discussion

Switzerland is also implementing international standards related to tax transparency. It has agreed to the Automatic Information of Exchange (AIA) with all relevant countries that meet minimum requirements, which have been set to the Organization for Economic Co-Operation and Development (OECD) criteria. Switzerland now has AIA agreements with over 100 countries, and it is a list that is expanding constantly.

Swiss finance's present and past challenges have long been part of a political discussion and government regulation. As with all other countries and markets, Switzerland is working continually to improve its legal and ethical framework in order to ensure a better future.

One-sided

The «Suisse Secrets» reports are misleading and one-sided and I would like to make a few points.

The reporting goes back to the Second World War. A period when there were many developments in all countries and markets. What would the files have looked like if others would have been the main actors? The articles are traveling through time and hindsight seemingly shows that much would have needed to run a different course, and not only with us. The Swiss banking system shares responsibility, as do many others. Portraying Credit Suisse as an institute that solely banked criminals and that these were solely enabled by them is - with some distance - not to be taken seriously.

Taking responsibility and dealing with the past are important. That is the only way society can learn and create a better future. But taking responsibility also means closely analyzing the complexity and interplay of political, societal and economic developments.

Giving the impression that Credit Suisse, as a small player on the global stage, was responsible for the evil in this world is building a picture that does not acknowledge responsibility in many other places and looks for someone to blame. It is not a story that brings us any further, even if there were companies that had such global power at any point in history - even though this could not possibly have been a Swiss bank.

Taking a Step Back

I would have expected that the reporting would have looked at all of those responsible. Switzerland is being criticized in that it has not conducted AIA with any of the problematic countries. With that, it is being ignored that the country's AIA network is just as comprehensive as that of Germany, France, and the UK. And that the U.S. has not implemented the AIA at all is simply ignored and doesn't play a role.

Why was that not reported? Is this an attack against Swiss finance?  The EU tax base is a substantial one and since Brexit, Germany and France have been fighting for some of London's financial activities.

The issue of undeclared money also cropped up as a theme again. It angers countries because of the loss of tax revenues. But it is not only irritating when the perpetrators have accounts in Switzerland, it is just as irritating when they have accounts in the U.S., and which are offered unmistakably as a standard business service.

Open and Transparent Discussion

As the CEO of the Swiss Bankers Association, I am always willing to contribute to efforts for Swiss finance to discuss problems openly and transparently, to take responsibility and change. I also think it is important and the media ask for discussion and analysis.

Maybe it would be possible for the media to focus on materials that did not focus on selling, on making an impact and were more considered. Difficult themes need to discussed and worked on. A public show of who is to blame is not the solution.