# Swiss press freedom dealt blow in bid for overhaul of bank secrecy rules
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-06
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: Switzerland Rejects Overhaul of Banking Secrecy Law
Meta Description: Lawmakers in Switzerland rejected bids to overhaul strict banking secrecy rules, impacting press freedom and whistleblower protection. Stay informed with the
URL: https://financedigest.com/swiss-press-freedom-dealt-blow-in-bid-for-overhaul-of-bank-secrecy-ruleshtml

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By Brenna Hughes Neghaiwi

ZURICH (Reuters) -Lawmakers blocked a bid to overhaul strict Swiss banking secrecy rules on Friday in a blow to [freedom](https://www.financedigest.com/rci-bank-increases-easy-access-interest-rate-to-1-02.html) of information advocates seeking an exemption for [journalists](https://www.financedigest.com/5-top-tips-when-holding-a-crisis-press-conference.html) and whistleblowers.

Switzerland has been under fire over its press freedom rules after a law introduced in 2015 led a leading media group, Tamedia, to bow out from an international investigation into a trove of Credit Suisse client data, published by a consortium of journalists in February as the “Suisse Secrets”.

A parliamentary committee said it had struck down two motions [seeking to overhaul the bank](https://www.financedigest.com/seven-out-of-ten-uk-adults-aged-25-44-never-seek-advice-on-dealing-with-debts-despite-depending-on-the-bank-of-mum-and-dad.html "Seven out of ten UK adults aged 25-44 never seek advice on dealing with debts despite depending on the bank of mum and dad") secrecy rule that has drawn U.N. criticism, which would have tasked the government with “reversing the [threat to press](https://www.financedigest.com/how-to-press-cancel-on-the-threat-of-subscription-style-ransomware-services.html "How to press cancel on the threat of subscription-style ransomware services") freedom and the protection of [journalists](https://www.financedigest.com/5-top-tips-when-holding-a-crisis-press-conference.html) and whistleblowers” that had resulted from it.

From the point of view of the majority of the committee, there is no [need for legislative action because Swiss banks](https://www.financedigest.com/banks-need-to-become-a-lifestyle-brand.html "Banks need to become a lifestyle brand") have developed considerably in recent years with regard to the prevention of money laundering and other white-collar crime,” the Economic Affairs and Taxation Committee said in a statement.

It added, without elaborating, that a [change of law would run the risk](https://www.financedigest.com/financial-risks-of-climate-change-overplayed-senior-hsbc-banker-says.html "Financial risks of climate change overplayed, senior HSBC banker says") of “encouraging public prejudgments against private individuals.

Introduced in 2015, the addition to Article 47 of Switzerland’s Banking Act states that anyone who discloses to “additional persons” information originally obtained from an employee or entity [working for a bank](https://www.financedigest.com/boes-bailey-says-bank-reforms-worked-but-questions-about-liquidity-buffers.html "BoE’s Bailey says bank reforms worked but questions about liquidity buffers") in violation of bank secrecy can be punished by up to three years imprisonment or a fine.

UN Special Rapporteur for [Freedom](https://www.financedigest.com/rci-bank-increases-easy-access-interest-rate-to-1-02.html) of Opinion and Expression Irene Khan wrote to Bern in March to voice concern that there were no explicit exemptions for [journalists](https://www.financedigest.com/5-top-tips-when-holding-a-crisis-press-conference.html) or whistleblowers.

This paralyses [freedom](https://www.financedigest.com/rci-bank-increases-easy-access-interest-rate-to-1-02.html) of expression and media freedom, as well as impeding the free flow of information,” she wrote in a letter [seen by Reuters](https://www.financedigest.com/russias-2022-inflation-seen-at-13-4-more-rate-cuts-to-come-reuters-poll.html "Russia’s 2022 inflation seen at 13.4%, more rate cuts to come: Reuters poll").

Switzerland’s Ambassador to the United Nations in Geneva said in a reply on April 29 that he was unaware of any recent legal action against journalists and said Bern recognised the [importance of media](https://www.financedigest.com/yoono-discuss-the-importance-of-social-media-checks.html "Yoono discuss The Importance of Social Media Checks") freedom, citing its protection in the country’s constitution.

He added that Switzerland is in the process of [developing a national](https://www.financedigest.com/four-reasons-why-smes-in-developing-nations-should-embrace-a-cashless-society.html "Four reasons why SMEs in developing nations should embrace a cashless society") action plan for journalists’ safety.

While the law had seen little public testing to date, it became hotly debated after a consortium of foreign media outlets reported [Credit Suisse](https://www.financedigest.com/swiss-franc-grapples-with-safe-haven-identity-crisis-after-credit-suisse.html "Swiss franc grapples with safe-haven identity crisis after Credit Suisse") managed accounts for human rights abusers, fraudsters and businessmen who had been placed under sanction in the so-called “Suisse Secrets. [Credit Suisse](https://www.financedigest.com/bank-shares-rise-after-credit-suisse-rescue-eases-crisis.html "Bank shares rise after Credit Suisse rescue eases crisis") denied wrongdoing.

Swiss media group Tamedia declined participation in the project, kickstarted when one person leaked information on the [Credit Suisse](https://www.financedigest.com/some-credit-suisse-at1-bondholders-seek-legal-advice-law-firms.html "Some Credit Suisse AT1 bondholders seek legal advice -law firms") accounts to Germany’s Sueddeutsche Zeitung, saying the legal consequences would have been “unforeseeable.

In no other democratic country is it a crime to [report on such accounts](https://www.financedigest.com/whatsapp-bans-2-4-million-indian-accounts-in-july-monthly-report.html "WhatsApp bans 2.4 million Indian accounts in July – monthly report"), as long as the revelations are in the public interest,” heads of Tamedia’s research desks wrote in an article on Feb. 20.

Tamedia’s editor in chief called it a “disgrace” that foreign journalists had to step in to do the work, [calling for an urgent repeal of the relevant law](https://www.financedigest.com/international-law-firm-calls-in-viato-connect-uk-and-us-offices.html "INTERNATIONAL LAW FIRM CALLS IN VIATO CONNECT UK AND US OFFICES").

I clearly see this is as a missed [opportunity,” Green party committee member](https://www.financedigest.com/millions-of-uk-linkedin-members-eligible-for-the-opportunity-of-a-lifetime.html "Millions of UK LinkedIn members eligible for the opportunity of a lifetime") Franziska Ryser told Reuters after the decision.

Ryser said she hoped parliament might now correct the law in wider deliberations, “so that [Swiss journalists don’t abstain from such investigations in the future.”](https://www.financedigest.com/swiss-ico-summit-attracts-global-industry-leaders-to-discuss-future-of-crypto-finance.html "Swiss ICO Summit Attracts Global Industry Leaders to Discuss Future of Crypto Finance")

The debate comes amid similar [discussions in Britain](https://www.financedigest.com/greece-britain-discussing-parthenon-sculptures-return-but-deal-not-close-athens-says.html "Greece, Britain discussing Parthenon Sculptures return but deal not close, Athens says"), where a Supreme Court decision in February was said to have far-reaching consequences for media reporting.

(Reporting by Brenna Hughes Neghaiwi; additional reporting by Emma Farge, Editing by William Maclean)


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