General Facts about Switzerland's Financial Centre

Facts and Figures

Switzerland's financial centre plays a central role in its economy with regards to labour, the creation of value and tax revenue. The financial sector is responsible for roughly 11.5% of the gross domestic product and employs 6% of the workforce. Furthermore, this sector contributes to approximately 10% of the country's income and corporate tax revenue.

Switzerland's general stability accounts for its international reputation as a preferred provider of financial services. Important competitive advantages are, for instance, its political constancy and the stability of its currency. Switzerland also plays a leading global role in asset management: roughly one third of all private assets invested abroad are managed by Swiss banks.

Global Networking

Switzerland's major banks are globally active, with a strong focus on Asia and the United States. Switzerland competes with other financial centres, such as London, Singapore or Luxemburg.

Reputation

As a financial centre, Switzerland frequently finds itself in the crossfire of international criticism. Its reputation has suffered on account of its acceptance of assets from dictatorial regimes (so-called "potentate funds"). Switzerland has tightened its regulations concerning money laundering and due diligence, partly as a result of pressure from abroad.

Other subjects that attract criticism are Switzerland's strict interpretation of banking secrecy, and its legal distinction between tax evasion and tax fraud. Under increasing pressure from the United States and the European Union, Switzerland recently decided to include article 26 of the OECD Model Convention for Administrative Assistance in its double taxation agreements (or DTAs). With this, it pledged, on submission of a concrete and well-founded request, to disclose information in individual cases to selected partner states for fiscal purposes irrespective of the existence of a tax offence. This duty of disclosure extends to banking information.