Cross-Border Cooperation
The Swiss Bankers Association explains that criminals and cheats should not expect a safe haven for ill-gotten gains. Swiss banks face criticism and pressure to cooperate with foreign governments interested in tax revenues, fighting terrorism, and reducing fraud. As a result, banks provide information about clients in numerous situations, including criminal allegations, tax investigations, and divorce proceedings. While it may be possible to hide assets overseas, it’s likely illegal to do so, and it’s increasingly hard to get away with.
FATCA Agreement
Tax evasion is especially hard to pull off as a result of the Foreign Account Tax Compliance Act (FATCA). FACTA is U.S. law, but Swiss banks have agreed to share information about U.S. account holders, no doubt persuaded by stiff sanctions for non-compliance. It’s not illegal to hold assets overseas, but U.S. taxpayers are required to declare those accounts, which may lead to tax liabilities. If you don’t disclose the existence of thе accounts, your bank may do it for you.