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

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Why is Donald Trump on trial for $130,000 paid to Stormy Daniels?

The Observer 14 Apr 2024
The district attorney said that his office has charged hundreds of people who have violated federal bank-secrecy, sex-crime and tax-evasion laws by charging them with falsifying business records ... During the fraud trial, Trump posted a picture of the law clerk with Democratic senator Chuck Schumer, calling her “Schumer’s girlfriend”....
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Cyber Week in Review: April 12, 2024

Council on Foreign Relations 12 Apr 2024
The law gives the Federal Trade ... The APRA would preempt a number of state privacy laws, such as California's Consumer Privacy Act (CCPA), while allowing states to set higher standards in areas around data security breaches, civil rights laws, and bank secrecy laws, among others....
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FinCEN commends Coinbase for its contributions in major criminal case

Cryptoslate 11 Apr 2024
The acknowledgment forms part of the annual FinCEN Director’s Law Enforcement Awards Program, which celebrates substantial criminal cases that have utilized Bank Secrecy Act (BSA) reporting as a foundation for successful investigations and prosecutions ... It detailed how law ......
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Coinbase Bags FinCEN Award Following Crime Prevention Efforts

CoinGape 11 Apr 2024
Coinbase contributed to the investigations of one of the seven major criminal cases spurring the FinCEN Director’s Law Enforcement Award. Firms bagged the award after reporting under the Bank Secrecy Act (BSA) was used to effectively prosecute cases ... Law Enforcement Award....
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New York Judge Rules BitMEX Co-Founder Must Face Lawsuit for Illegal Access to Customer Accounts

Coinspeaker 09 Apr 2024
Coinspeaker. New York Judge Rules BitMEX Co-Founder Must Face Lawsuit for Illegal Access to Customer Accounts ... Judge Carter Refuses to Dismiss BitMEX Co-founder’s Lawsuit ... In June 2022, a New York federal court sentenced Delo to 30 months probation for violating anti-money laundering (AML) law, including the Bank Secrecy Act (BSA) ... next....
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Need to halt Lebanon’s perpetual cycle of crises – EU

Famagusta Gazette 08 Apr 2024
dollars from the International Monetary Fund ... Decisive leadership is needed ... “The adoption of the 2024 budget within constitutional deadlines, the reforming of the bank secrecy law, and the stabilization of the exchange rate have shown that where there is a will, there is a way,” it added ... .......
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EU urges Lebanon to implement structural reforms to unlock aid

Xinhua 05 Apr 2024
"The adoption of the 2024 budget within constitutional deadlines, the reforming of the bank secrecy law, and the stabilization of the exchange rate have shown that where there is a will, there is a way," it added ... ■ ... ....
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'Time to act is now': EU urges Lebanon to implement IMF agreed reforms

Naharnet 05 Apr 2024
"Electing a President and forming a fully functioning Government are critical ... The adoption of the 2024 budget within constitutional deadlines, the reforming of the bank secrecy law and the stabilization of the exchange rate, have shown that where there is a will, there is a way ... Decisive leadership is needed ... ....
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America must lead on crypto regulation

Gulf-Times 31 Mar 2024
... while bypassing US regulations, potentially becoming a refuge for illicit actors.At the very least, the US must ensure that foreign issuers of dollar-referenced stablecoins comply with the Bank Secrecy Act, anti-money laundering and counterterrorism laws, and sanctions regimes....
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Ethereum tokens lead KuCoin’s $500 million withdrawal spike post US charges

Cryptoslate 27 Mar 2024
Embattled crypto exchange KuCoin endured a surge in withdrawal requests the past day after the US authorities levied criminal charges against the platform ... On March 26, the US authorities alleged that the exchange and its founders operated without proper legal permissions and violated bank secrecy and anti-money laundering (AML) laws ... 0xScope) ... .......
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Breaking: US DOJ Charges Kucoin And 2 Co-Founders For Flouting AML Laws

CoinGape 26 Mar 2024
Kucoin Flouts Bank Secrecy Act. According to the brought on by Damian Williams the United States Attorney for the Southern District of New York and other top regulators, Kucoin, Gan, and Tang were hit with charges for conspiring to operate an unlicensed money-transmitting business and conspiring to violate the Bank Secrecy Act....
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KuCoin assures users funds are safe after US levies criminal charges

Cryptoslate 26 Mar 2024
The indictment accuses the platform and its founders of bypassing the Bank Secrecy Act and operating an unlicensed money-transmitting business ... KuCoin and its related entities face several charges, the most severe of which is a potential ten-year prison sentence for a substantive violation of the Bank Secrecy Act....
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Unveiling the Trojan horse: the new road to money laundering in a global context

B & FT Online 26 Mar 2024
Banking Secrecy Havens.. Jurisdictions with stringent secrecy laws provide a veil of anonymity, aiding in the concealment of the origins of illicit funds ... Jurisdictions with strict secrecy laws and low regulatory oversight attract individuals and entities looking to launder money....
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