Switzerland shares bank details with Nigeria for first time

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Five additional countries, including Nigeria, now benefit from an automatic exchange of banking information with Switzerland, taking the total to over 100 for the first time.

On Monday, the Swiss Federal Tax Administration revealed that it had provided details of around 3.4 million bank accounts held by foreigners (or those with a fiscal residence abroad) to their countries of origin or residence this year. In return, it had received information on banking details of around 2.9 million accounts held by Swiss citizens/residents in 101 partner countries.

Nigeria, Albania, Brunei, Peru and Turkey were added to the existing list of 96 countries with which Switzerland exchanged bank account information. In the case of 27 countries, including Russia, Switzerland received information but did not reciprocate because they did not meet data security standards or chose not to receive information. According to the exchange rules, shared banking data is to be used for tax purposes only and cannot be made public.

The automatic exchange of information (AEI) treaty was set up by the Organisation for Economic Co-operation and Development (OECD) to help prevent tax-cheats and money-launderers from hiding their assets in other countries.

Banks pass on details of accounts operated on behalf of overseas clients to the Swiss authorities who channel this information to the home country of the account holder. The establishment of the AEI system was a major landmark in dismantling the once-fabled Swiss banking secrecy. Switzerland set up the legal basis for such an exchange of data in 2017.