SWISS BANKERS ANNOUNCE CURBS ON BANKING SECRECY
Swiss bankers announced a series of
measures aimed at preventing abuses of the country's tight
banking secrecy laws as part of a revision of a 10-year-old
voluntary code of conduct.
    The measures follow renewed controversy over the limits of
Swiss secrecy, prompted by recent allegations that both former
Philippine President Ferdinand Marcos and U.S. Officials linked
with the arms-for-Iran scandal had accounts here.
    The Swiss Bankers Association said it wanted to curb the
right of bank clients to hide their identity behind lawyers.
    The association said it would insist that banks identify
anyone doing cash business at the counter worth more than
100,000 francs, down from a current 500,000.
    Banks would continue to be required to identify their
clients in other cases and pledge not actively to help capital
flight, or tax fraud. They would also still face fines of up to
10 mln francs in case of abuse.
    "The Bankers Association is convinced that this new
agreement will give the banks an instrument which will
guarantee banking secrecy and help the standing of Swiss
banking both home and abroad," the statement said.
    The code, once approved by member banks, will go into force
on October 1. The original dates from 1977.
    Controversy surrounding the alleged use and then freezing
of bank accounts here linked with Marcos and with the U.S.
Arms-for-Iran scandal have again directed attention on the
revision of the code.
    The recent busting of a major international drug ring also
gave fresh evidence Swiss banks had been used for "laundering"
drug money.
    The Banking Commission, responsible for overseeing the
banks, said at the end of last year it wanted a drastic
reduction in clients' ability to hide behind lawyers and
fiduciary agents, a proposal criticised by lawyers.
    Steering a middle way, the association said today that
lawyers doing banking business on behalf of clients would in
future have to pledge they were not doing so merely to preserve
the clients' identity nor only for a short period of time.
    Until now, lawyers have only been obliged to sign a form
pledging that their clients are not misusing their anonymity
for illegal purposes.
 REUTER
