Swiss authorities confirm that Switzerland will comply with the US Foreign Account Tax Compliance Act (FATCA) by the new July 1, 2014 deadline. Under FATCA, Swiss banks must provide information on all American accounts, regardless of where the account holder resides.
The landmark decision comes three months after Swiss lawmakers were asked to approve a draft law paving the way for the country's banks to pass depositors' information to US authorities.
In 2009, Switzerland's biggest bank, UBS, admitted to helping Americans evade US taxes, and agreed to turn over more than 4,450 client names and pay a $780m fine. Until that point, Switzerland was a secretive tax haven with fiercely guarded banking secrecy rules.