Germany and Switzerland Face-off Over Bank Data

bankThe attempt to buy data on cross-border tax evaders by Germany is similar to the offense of a bank robbery, a lawmaker from Switzerland thinks so.

Germany announced Tuesday, February 2, that it would pay for the data on some 1500 suspected tax dodgers whose funds are stashed in Swiss accounts.

The idea is that after a whistle-blower obtains information illegally, the government would then buy the data from the bank. So, getting the data is legal but what triggered them to get the data was obtained illegally. This tactic is not something new to the German government. They have practiced the same technique in 2008 when they have paid data from LGT, the top bank of the small country of Liechtenstein.

The Swiss government is finding a diplomatic solution before the problem escalates. Germany is the Alpine country’s top trading partner.

Swiss banks are of course famous for its stability, privacy and protection of client’s asset and information.