Switzerland to stop undeclared funds into its banks

In the backdrop of increased international pressure on its banking secrecy practices, Switzerland said it will prevent the flow of undeclared funds from foreign countries into the Swiss banks.

India is among many nations seeking details of their respective citizens who are alleged to have stashed away billions of dollars in secret accounts in Switzerland.

The Swiss Federal Council in a statement said that it is against attracting "undeclared funds from overseas".

The government would draw up various solutions to prevent new, undeclared funds from coming to Switzerland.

"With the objective of achieving clarity and legal security, the Federal Council therefore wants to push ahead with the regularisation of undeclared assets whilst at the same time ensuring that privacy is safeguarded," it noted.

Explaining its financial market strategy, Switzerland said it would continue to implement the OECD standards in tax issues and continue to cooperate with other countries in combating tax fraud and tax evasion in the future.

The Council has called for regularising undeclared assets.

Going by Swiss laws, tax fraud is considered as a criminal offence while tax evasion is punished with severe administrative fines and does not attract jail sentence.

"The Federal Council continues to reject the automatic exchange of information in terms of laying bare every detail of citizens' lives," the statement noted. PTI