The End of Secret Swiss Accounts?: The Impact of the U.S. Foreign Account Tax Compliance Act (FATCA) on Switzerland\u27s Status as a Haven for Offshore Accounts

The closing of Switzerland’s oldest bank Wegelin in early 2013 was a symbolic moment for the Swiss banking industry. Add to Wegelin fourteen other Swiss banks under fire by the U.S. Department of Justice for aiding tax evasion, and Swiss banks no longer seem to be shrouded in a cloak of mystery. While Switzerland is still the top destination for offshore wealth, U.S.’s Foreign Account Tax Compliance Act (FATCA) began implementation in 2014. This Comment will argue that FATCA will fundamentally alter Switzerland’s status as a safe haven for secret offshore accounts, as Swiss banks promise to automatically provide the U.S. government with account information, and cooperate with other international transparency measures picking up momentum alongside FATCA. This Comment will also analyze FATCA’s impact on Switzerland’s banking policies regarding the transparency of offshore accounts used for foreign tax evasion and conclude by posing questions about the future of Swiss banking industry