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.
Axion SWISS Bank SA at the end of October 2016 provided a first communication to its customers regarding the AEOI. Below you can find this communication:
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.
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:
Are my deposits covered by the deposit insurance scheme?
Yes, like any bank or securities dealer in Switzerland, Axion SWISS Bank SA is required to sign the Agreement by Swiss Banks and Securities Dealers on Deposit Insurance and as such is a member of esisuisse. Client deposits held with Swiss branches of the bank are protected for up to CHF 100 000 per client, per bank. Deposits also include medium-term notes held in the name of the depositor at the issuing bank.
All relevant information on the deposit insurance can be found at www.esisuisse.ch.
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.