Emma Dai writes in the China Daily: A decision by Switzerland to hand over details of secret bank accounts in the country to other nations will benefit China’s ongoing anti-corruption campaign, financial specialists say. The Swiss pledged on Tuesday to provide details of foreign bank accounts, marking a breakthrough in the global crackdown on tax evasion.
The Financial Times reported that Switzerland committed itself to signing a new global standard on automatic exchange of information. The move is being viewed as a decisive break away from traditional Swiss protection of banking clients’ privacy.
“The move will definitely help anti-corruption efforts in China, as Switzerland is the world’s largest offshore financial center,” said Shen Minggao, head of China research at Citibank. “It will become much easier for the Chinese authorities to collect information on overseas accounts relating to corrupt officials.”
The Swiss policy change pledge was made at a meeting of the Organization for Economic Cooperation and Development in Paris. The declaration was signed by more than 40 countries, including other member countries of the OECD and G20 nations. It requires the collection and exchange of information on bank accounts and the beneficial ownership of companies and other legal entities such as trusts.
The policy change by the Swiss authorities will contribute to international anti-corruption cooperation efforts. Late Philippine president Ferdinand Marcos had billions of dollars in secret Swiss bank accounts, and imprisoned former Taiwan leader Chen Shui-bian also had deposits in Swiss banks. Improving transparency may be a global trend.
