Switzerland and the United States have concluded an agreement to exchange financial account data, the Swiss Federal Department of Finance announced today. The new arrangement represents a major shift from the current practice, whereby Switzerland unilaterally provides financial account data to the United States. Under the new agreement, Switzerland will also receive equivalent data from the United States.
The bilateral exchange will begin in 2027 and will be conducted under the Automatic Exchange of Information. This development is based on the existing Foreign Account Tax Compliance Act (FATCA), a set of US rules that have been in effect worldwide since January 1, 2014. FATCA requires foreign financial institutions to report foreign assets of US account holders or pay withholding taxes.
The agreement between Switzerland and the United States is expected to increase financial transparency and help prevent tax evasion. The Swiss Federal Ministry of Finance did not disclose any further details about the terms or operational aspects of the agreement. The exchange of information between the two countries will continue according to the schedule from 2027.
Reuters contributed to this article.
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