First of all: what do we mean when we talk about “Automatic Exchange of Information” (AEOI)? On the back of the recent financial and debt crisis, the battle against tax evasion has aroused widespread interest in the international community and by mid-2014 the Organization of Economic Cooperation and Development (OECD) developed a new Standard for Automatic Exchange of Financial Account Information in Tax Matters, based on the United States Foreign Account Taxpayer Compliance Act (FATCA). Approximately 100 countries – among them Switzerland - have already declared their intention to adopt the standard. To enact the AEOI, bilateral agreements between participating countries will have to be signed.
5. Partner States that agreed to the AEOI with Switzerland
The situation is constantly evolving. Visiting the specific page on the Federal Administration website (click here) you can access an up to date list of partner states that agreed to the AEOI with Switzerland or that have planned to enter into negotiations.
6. Timeline to implement the AEOI
01.01.2017: Swiss legislation of the AEOI standards is enacted, and new procedures for opening new banking relationships.
01.01.2017 AEOI standards with the EU, Australia, Canada, South Korea, Japan, Guernsey, Isle of Man, Iceland, Jersey and Norway are enacted.
30.06.2018 First reporting by the Swiss Financial Institutions
7. Useful information for clients
On the website of the OECD it is possible to find more information about the AEOI standards. Amongst the information available, we would like to point out the following two that are of practical use:
Financial Market Infrastructure Act (FMIA) - Important communication
We would like to inform you that from January 1st 2018, all Swiss bank institutions will be obliged to systematically communicate details of over-the counter (OTC) and exchange-trades (ETD) derivate transactions including, inter alia, customer information.
The Financial Market Infrastructure Act (FMIA, RS 958.1) specifies, in Articles 104-106, the details of the content and modalities of the communication that must be made through a central entity, the "Central Trade Repository”, authorized by Federal Financial Market Authority (FINMA). Axion SWISS Bank SA has therefore decided to enter into an agreement with SIX Trade Repository AG, Zurich.