Bank secrecy

Bank secrecy (or bank privacy) is a legal principle in some jurisdictions under which banks are not allowed to provide to authorities personal and account information about their customers unless certain conditions apply (for example, a criminal complaint has been filed). In some cases, additional privacy is provided to beneficial owners through the use of numbered bank accounts or otherwise. Bank secrecy is prevalent in certain countries such as Switzerland, Lebanon, Singapore and Luxembourg, as well as offshore banks and other tax havens under voluntary or statutory privacy provisions.

Created by the Swiss Banking Act of 1934, which led to the famous Swiss bank numbered account, the principle of bank secrecy is always considered one of the main aspects of private banking. It has also been accused by NGOs and governments of being one of the main instruments of underground economy and organized crime, in particular following the class action suit against the Vatican Bank in the 1990s, the Clearstream scandal and the terrorist attacks of September 11, 2001. Former bank employees from banks in Switzerland (UBS, Julius Baer) and Liechtenstein (LGT Group) have testified that their former institutions helped clients evade billions of dollars in taxes by routing money through offshore havens in the Caribbean and Switzerland. One of these, Rudolf M. Elmer, wrote, "It is a global problem...Offshore tax evasion is the biggest theft among societies and neighbor states in this world." The Swiss Parliament ratified on June 17, 2010 an agreement between the Swiss and the United States governments allowing UBS to transmit to the US authorities information concerning 4,450 American clients of UBS suspected of tax evasion.

Latest News for: Bank secrecy laws


Is Changpeng Zhao Really Manipulating BNB Prices?

CoinChapter 17 Jun 2024
Is Changpeng Zhao Manipulating BNB Price. Read on Google News ... This amounts to roughly 94 million tokens ... Department of Justice (DOJ) indicted Changpeng Zhao and Binance for allegedly violating sanctions and money laundering laws. Zhao pleaded guilty to violating the Bank Secrecy Act and stepped down as CEO, succeeded by Richard Teng....

Don't discount Trump's record of long-term survival

Korea Times 12 Jun 2024
Manhattan District Attorney Alvin Bragg and others note that this proves "no one is above the law." ... The Banking Secrecy Act of 1970 provided important new enforcement opportunities by requiring banks by law to cooperate with investigations of potential money laundering....

Here's why the spineless GOP sides with Trump's Big Lie 2.0

Alternet 07 Jun 2024
... of members of law enforcement, the FBI, and the judiciary ... — Admitted in a settlement with the IRS that his casinos had engaged in years of violations of money-laundering laws and “willful and repeated” violations of the Banking Secrecy Act (many on behalf of Russian oligarchs),....