SVP Demands Slowdown on AEOI

Opposition to the widening of the automatic exchange of information (AEOI) is growing stronger, and now the populist Swiss Peoples Party (SVP) has called for a slowing of the process.

In the consultative process several bodies, including the Union of Swiss Private Banks (Vereinigung Schweizerischer Privatbanken) have criticised the rapid expansion of the (AEIO). For example, caution is needed when dealing with countries with weak democratic structures, since pressure could be exerted for releasing customer bank data.

Now the SVP has formulated its reservations on the AEOI, as far as it affects «corrupt countries». The SVP is especially concerned about Swiss nationals living abroad, and SVP parliamentary member Thomas Matter said Switzerland can’t proceed with data exchange without considering the potential losses to innocent Swiss citizens.

Constitutional Problems

Switzerland has already agreed AEOI deals with some 38 countries, with a further 41 to follow, including, according to the SVP those with dubious legal systems, like Argentina, Brazil, Saudi Arabia, China and Russia.

Support for AEOI critics also comes from academic circles. Professors René Matteotti (Zuerich) and Rainer J. Schweizer (St. Gallen) as well as the government’s data protection official Adrian Lobsigerargue the AEOI may contravene the country’s constitution, according to Matter.

The SVP demands the AEOI not be applied to those 11 countries which have less than 45 points on the corruption index, or are rated «not free» on the «Freedom House Democratic Index».