The consultation on a new agreement with the USA regarding the exchange of financial data has begun. In order to implement the agreement signed last summer, it is necessary to amend national law, as outlined in a Federal Council statement on Friday.

Switzerland will no longer unilaterally provide information on financial accounts to the USA, but will also receive information from the USA.

The U.S. Foreign Account Tax Compliance Act (FATCA) requires financial institutions outside the USA to pass on information on U.S. accounts to the U.S. tax authorities or lo levy a tax. This is implemented via bilateral agreements with the individual country.

In Force Since 2014

The existing FATCA agreement between Switzerland and the USA has been in force since June 2024. Under this agreement, Swiss financial institutions report account data directly to the U.S. tax authorities with the consent of the U.S. clients concerned. If clients do not consent, the USA must request the data through the normal administrative assistance channels. Conversely, no account data will flow from the USA to Switzerland, the ress release continues.

The new FATCA agreement was signed by Switzerland and the U.S. in June 2014. The Federal Assembly will decide on the amendment and the changes are due to come into force on January 1, 2027.

The consultation period will last until June 14, 2025.