In 1934, Switzerland introduced Article 47 into its banking law, establishing banking secrecy as an inviolable principle. According to banking secrecy, Swiss banks are prohibited from sharing any of their customer information with third parties, even in cases where other countries are investigating tax evasion or money laundering cases. Otherwise, they are prosecuted. In 2014, Article 47 was strengthened, providing for a prison sentence of up to five years for anyone who transmits confidential banking information to third parties.
Banking secrecy law along with Switzerland’s policy of neutrality and stability have helped its banks attract an international clientele of depositors with questionable income. For many it is a safe haven in the effort to avoid taxes and launder financial resources from illegal activities.
Swiss Secrets Investigation
Fifteen days ago, documents were leaked about the accounts of 30,000 customers of the Swiss bank Credit Suisse, the data of which was brought to light by a journalistic consortium from 47 international media. Documents dating back decades that reveal that the bank’s clientele included people from the underworld, accused of corruption, torture, money laundering and drug traffickers, embarrass the iconic bank and all the Swiss financiers. , which is the locomotive of the Swiss economy. Already the country’s banking stocks fell sharply last week at a difficult time for markets that were already under enormous pressure from Russia’s impending invasion of Ukraine.
The first reactions from the European Union show that they no longer trust the Swiss regulators, although they assure that they are in close contact with the bank. The European Union will not archive the issue and will most likely take tough action. It is characteristic that the European People’s Party asks for consideration of the possibility of Switzerland being included in the black list of countries that facilitate money laundering.
The list includes 21 countries, including Iran, Syria, and North Korea, which are considered money laundering paradises. Such a development would be disastrous for the prestige and credibility of the Swiss banking system as it would reduce its ability to hold existing deposits and attract new ones.
Trends of silencing journalists
Extending the scope of Article 47 on banking secrecy, the Swiss parliament has decided that it may apply (in addition to bank employees) to journalists who wish to disclose such information. Therefore, in the context of the current investigation into Swiss Secrets, as the file with the recent revelations was called, the law should apply both to the anonymous source who provided the confidential data to the Suddeutsche Zeitung and to all journalists who used it. their articles and given that the German newspaper shared them with them, threatening them with severe criminal sanctions.
To date, the law has never been applied against the press and it is no coincidence that no Swiss media outlet participated in this investigation.
This law is a huge restriction on press freedom in Switzerland and serves to censor and intimidate the media. The application of this criminal provision to journalists will be a clear violation of the constitutional principles that guarantee the freedom of the press, calling into question the fundamental principles of a Democracy.
