Banking Privacy in Switzerland

In Switzerland, privacy is seen as a fundamental principle in the country’s banking system and in any democracy more broadly. Bank secrecy means that financial institutions, such as banks, are not permitted to provide any personal or account information about their clients to government, law enforcement or other authorities. Bank secrecy is often upheld with the exception of certain circumstances, for examples when information is needed related to a criminal investigation. In addition to Switzerland, other countries that abide by strict bank secrecy include Luxembourg, Singapore and Lebanon. Offshore banks and other tax havens also provide privacy provision to their customers, including banks in Panama and the Cayman Islands. Bank secrecy is also a guiding principle in private banking.

Bank laws in Switzerland make it a criminal act for any Swiss bank to reveal the name of any account holder. This provision was introduced and codified by the Federal Act on Banks and Savings, which is commonly referred to as the Swiss Banking Law of 1934. However, bank secrecy has been a principle in the country since the Middle Ages. The legislation introduced in 1934 led to the creation of the famed Swiss bank numbered account. Swiss bank secrecy helps protect bank clients and maintain their privacy. These protections are comparable to confidentiality afforded between doctors and patients, as well as confidentiality between a lawyer and his or her client.