Monday, 5 May 2014

How the Americans are defending their own bank secrecy

The financial industry in the USA is fighting hard for the preservation of bank secrecy. Switzerland’s private banking industry should take lessons from the Americans.

Not only Switzerland is under the massive attack of the U.S. Treasury and the U.S. tax authority (IRS, Internal Revenue Service) but also the financial industries in Florida and Texas are under pressure.
Since about a year foreigners with a bank account in the United States come under closer scrutiny. If their accounts earnings are more than USD 10 a year, this income must be reported directly to the tax authorities. The U. S. Treasury is convinced that foreigners have deposited up to USD 400 billion in American banks without having a regular USA residence permit, or at least have partially illegally invested in the USA territory.

Bankers Association of Florida and Texas are fighting the information exchange

The Internal Revenue Service (IRS) will collect this tax data in order to improve the exchange of information in tax matters with other countries. A similar so-called reciprocal agreement is also the FATCA agreement.
Florida Bankers Association (FBA) and the Texas Bankers Association ( TBA) are efficiently defending the bank secrecy. They are fighting against the elimination of banking secrecy and want to cancel decisions of the authorities having cancelled the bank secrecy rules.

America has always been a haven for the wealthy prosecuted in their home countries

To this end, they fight in court. A first action was indeed shot down by a federal judge. But the two industry associations do not want to be discouraged. They wrestle with the right speakers doing the right lobby efforts against elimination of the banking secrecy.

They want to increase the pressure on the government.
In Central and South America, the disrespect of human rights is a daily phenomenon.

Many residents in Latin America are living in constant fear that their data protection rights and elementary human rights are disregarded. Florida and Texas Bankers Associations have engaged professional lobbyists taking care on their interests and fighting for the preservation of banking secrecy. Switzerland should do the same and engage professional lobbyists to fight in favor of banking secrecy.