The Swiss Financial Market Supervisory Authority, FINMA, has released a statement warning of the residual risks associated with payment and securities transactions with regards to bank client data.
Its statement notes:
'In the course of carrying out payment and securities transactions, information and messages are exchanged by banks and securities dealers. This exchange of information occurs when conducting international and in some cases domestic payment and securities transactions and when making information inquiries through the SWIFT system. It is essential as a means of facilitating connections between all banks and ensuring the orderly processing of clients' transactions. Data protection is accorded by the strict data protection standards adhered to by SWIFT. However, SWIFT stores data abroad. Up until 2012, data will be stored in the Netherlands and in the US, and from 2012 onwards they will be stored in Switzerland and the Netherlands. For technical reasons it was not possible to devise an economically feasible, practical solution as an alternative to SWIFT that could have been used for all domestic payment and securities transactions.'
It continues:
'Data stored abroad are no longer protected under Swiss law and may be passed on to foreign authorities in accordance with the regulations of the country where the client data is stored. In view of the residual risk these circumstances entail, the Swiss Bankers Association has issued, as agreed with the FINMA and the Federal Data Protection Commissioner, a general client information notice with a comprehensive guide explaining how the system works, and the implications of Switzerland’s new Tax Information Exchange network on bank transfers. The guidance note is available via the Swiss Bankers Association website.'
.
Network Tweets Archive
| Resources | Partners
| Site Map | Links
| Newsletter
Archive | Contact
| RSS Feeds
About | Syndication |
Advertising & Marketing |
Recruitment |
Terms & Conditions |
Privacy
Copyright © 2012 - All Rights Reserved - Tax-News.com
All content provided by BSI Media
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment