Swiss Federal Department of Finance said it agreed with Germany to settle a dispute over tax evasion by wealthy Germans holding cross-border accounts with Swiss private banks. As per the agreement, persons resident in Germany can retrospectively tax their existing banking relationships in Switzerland either by making a one-off tax payment or by disclosing their accounts.
Swiss Department of Finance said that as part of settlement procedure, Swiss banks will pay 2 billion Swiss francs, or $2.8 billion, to the German government to cover the failure by their clients to reveal undeclared money in the past. The settlement will end a long-term dispute over tax evasion.
The tax treaty comes after Switzerland consented in March 2009 to meet international standards to avoid being blacklisted as a tax haven by the Organization for Economic Cooperation and Development. Switzerland is having a strong banking industry with a strict banking secrecy policy.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.