SWISS BANKERS PLANNING COMPROMISE ON SECRECY CURBS
Bankers, concerned about official calls
for curbs on Switzerland's banking secrecy, are likely to
propose a compromise plan when they meet regulators today, the
Bankers Federation Secretary said.
    Andreas Hubschmid confirmed a report in yesterday's
Sonntagsblick the Federation would make proposals to curb the
anonymity given to some bank clients who hide their identities
behind lawyers or fiduciary agents.
    "The Sonntagsblick story goes in the right direction, and I
cannot deny it," Hubschmid told Reuters.
    Hubschmid declined to confirm details, saying nothing had
yet been decided.
    Recent allegations U.S. Officials involved in the
arms-for-Iran scandal took advantage of Swiss discretion to
open accounts here have added fuel to the long-running secrecy
debate, while Manila has said former Philippine President
Ferdinand Marcos put a fortune into banks here.
    While Swiss banks are strictly forbidden to reveal the
names of their clients to the outside world, a self-governing
code of conduct dating from 1977 requires the bankers
themselves know the identities of their clients.
    But the banking code, due for renewal this October, allows
a client to hide his name behind a lawyer provided the latter
signs the so-called "B-form" guaranteeing that his client is not
misusing his anonymity for criminal purposes.
    The Commission said at the end of last year it wanted use
of the form drastically reduced.
    The bankers' compromise plan, Sonntagsblick said, quoting
reliable sources, aims to eliminate abuses by differentiating
between lawyers who just manage portfolios for their clients
and those who do so only as a small part of a wider legal
service.
    Only in the second case, would the use of the B-form still
be allowed, it said. Other clients would have to give up their
anonymity and reveal their identities to the bank.
    Commission President Hermann Bodenmann said the Commission
was likely to discuss the proposal at today's meeting with the
bankers, and during its own council session on Tuesday. He
declined further comment.
 The banks draw up their own rules of conduct. But banking
analysts said the banks cannot afford to ignore the views of
the Commission, which is ultimately responsible for preventing
abuses.
 REUTER
