(Reuters) -
The Swiss cabinet approved on Wednesday an amendment to a tax agreement with
the United States to ensure that bank clients are properly informed about
requests from U.S. authorities for data on suspected tax dodgers.
"The
amendment should ensure that the procedural rights of affected persons
domiciled in the United States remain guaranteed," the government said in
a statement.
The move
comes as Switzerland faces mounting pressure to hand over data on U.S. citizens
suspected of using secret Swiss bank accounts to dodge taxes.
Credit
Suisse (CSGN.VX) said last week it was complying with a request from the Swiss
government for account information after U.S. authorities requested help.
U.S.
authorities, which suspect thousands of Americans have used Swiss accounts to
evade billions of dollars in taxes, have been conducting a widening criminal
investigation into scores of Swiss banks, including Credit Suisse.
The Swiss
government has been in talks with U.S. authorities for months to try to secure
a deal that would end investigations into 11 banks in return for payment of
fines and the names of clients suspected of evading taxes.
However,
the extent of its cooperation is limited by strict bank
secrecy laws, which helped Switzerland become the world's biggest offshore
banking center with $2 trillion in assets.
The new
amendment to its 1996 double taxation agreement with the United States is
designed to ensure that bank clients are correctly informed even if U.S.
requests for Swiss help finding tax dodgers do not identify a suspect by name.
"The
amendment to the ordinance governs the procedure for nameless requests in cases
where the bank is unable to identify the affected persons," the government
said.
A Swiss
parliamentary committee last week approved a government proposal to allow the
country to hand over data on clients on the basis of patterns of suspicious
behavior.
The
proposal represents the Swiss government's attempt to settle the U.S. dispute and
avoid a lengthy court fight by Swiss bank clients seeking to protect their
identity.
Switzerland
struck deals with the U.S. authorities in 2009 to end investigations into UBS
(UBSN.VX), involving a fine of $780 million and the transfer of data on some 4,450
clients.
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