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All quiet on the Swiss front over Germany’s threat to buy stolen bank data

Update 10:40  Bern, Switzerland (GenevaLunch) – The Swiss government has issued a statement following a speech Monday by German Chancellor Angela Merkel where she said that Germany is ready to buy stolen Swiss bank data. Bern says in a brief note that Germany’s finance minister, Wolfgang Schaeuble, telephoned Swiss Federal Councilor and Finance Minister Hans-Rudolf Merz Monday. Merz told his German counterpart that Switzerland will not provide judicial assistance for requests which are based on stolen data. He added that Switzerland is, however, prepared to work more closely with Germany to unmask fiscal fraud, within the context of a revised double taxation treaty.

Switzerland has in recent months negotiated more than a dozen such treaties with other countries. It is currently in negotiations with Germany for a new treaty.

Merkel’s speech was made after Merz was contacted by Schaeuble by telephone to say that the German government has been approached with an offer to sell information on 1,500 bank clients for abut CHF3.5 million.

Media speculation about the source of the data has not been confirmed by either government, with reports suggesting it is part of the data stolen from HSBC bank in Geneva, others pointing to UBS accounts. Germany has noted that it is studying the legality of buying the data.

The Swiss government press release says that the Germans have not provided any details about the data.

Germany has said stolen data from a Liechtenstein bank, which it bought in 2008, has allowed it to recover abut CHF500 million in lost tax revenues.

The Swiss Bankers Association took a firm line Monday, saying in a press release:

• “we expect the German government not to purchase the data and as such act as a receiver of stolen goods; we expect it to return the data to the owner and prosecute the thief.
• The only correct way for two friendly nations to act in such a scenario is in accordance with international treaties.
• There is no justification for resorting to illegal methods of obtaining data, as Switzerland has adopted the OECD 26 standard and is in negotiations with Germany to amend the existing DTA. Any such action against Switzerland could be counterproductive with respect to further negotiations.
• We expect the Swiss Federal Council to adopt an unequivocal position towards Germany along these lines.”

Links to other sites: Bloomberg, Le Temps (Fre), Swiss Bankers Association statement 1 February, TSR (Fre)