As the Swiss political class has constantly refused to consider any changes to Swiss Banking Secrecy legislation, the Commission Fédéral des Banques in Switzerland has been forced to take a slightly different tack. First there was the Qualified Intermediary regime for US taxpayers holding US investments which became effective at the end of 2000. These rules require banks to declare the identity of their US clients who hold US investments to the IRS. This required exemptions to the Swiss rules which were duly agreed by the Federal authorities. Then, in a 2004 decision, the US authorities extended this reporting requirement to include US beneficiaries of Foundations and Trusts holding US investments. This was another blow to Swiss secrecy rules - and ominously was a blow struck by legislation from outside the country. But these rules applied only to US taxpayers holding US investments. From 2004, however, the CFB has required that all international wire transfers include the name and address of the ordering party whether or not the account is a simple numbered account. This is in accordance with the Financial Action Task Force recommendations for the prevention of money laundering. The FATF is not a legislative body but its so called “recommendations” have a similar effect to international laws, unless a jurisdiction wishes to be placed on the notorious Black List. The latest development came into effect on 1 January 2008. Now all payments must also include the International Bank Account Number (IBAN) from which the funds have been paid. As a lead article in Mondays Le Temps in Geneva put it: “Once the name, address and bank account number of the ordering party has been registered on the international inter-banking IT systems, what can happen will be”. Other commentators have suggested that FATF stops hiding behind a desire to prevent money laundering and admit that they are trying to unmask tax evaders. Swiss banks have written to their clients explaining these changes. Some of these letters have been normal circulars with revised General Conditions; some have been more up-front and deliberate in their approach. According to the article in Le Temps, the Banque Cantonal Bâloise wrote to their clients in a question and answer format. Question 1 – Do these new rules entail the lifting of Swiss Banking secrecy? Their answer (in summary): “No. Client data remains protected by the regulations and the Swiss authorities.” But in the small print… “Once data has been transferred overseas, it is no longer protected by Swiss law.” We all know that the Swiss make excellent chocolate. Surely this is more like fudge!