Switzerland’s private bankers are close to accepting their traditional business model of managing the undeclared wealth of foreigners cannot be sustained in a world of greater transparency.

Switzerland’s private bankers are close to accepting their traditional business model of managing the undeclared wealth of foreigners cannot be sustained in a world of greater transparency.

Leading members of the Swiss Private Bankers Association have recognised they may have to raise tax compliance with clients and, if necessary, encourage them to declare previously hidden assets.

The change in attitude has come after international pressure this year forced Switzerland to dilute its almost impenetrable bank secrecy following a bruising US legal battle against UBS, the world’s biggest wealth manager.

Private bankers stress they cannot force clients to come clean. But many say they would encourage tax compliance should sanctions imposed by domestic tax jurisdictions be deemed fair and acceptable.

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