Banking secrecy and trends in regulation

Priit Pahapill is a partner at Attorneys at law Borenius having expertise in syndicated lending, leveraged and acquisition finance, mezzanine finance, asset finance, and project finance projects. He also advises clients on banking, securities and securities market regulations.

Banking secrecy, especially the developments in banking secrecy, can be considered topical in Europe, especially in Switzerland. Whether the US Foreign Account Tax Compliance Act, an act designed to force foreign financial institutions to cooperate with the US Internal Revenue Service on identification of US tax residents, or the Estonian Parliament reading, a draft law giving the Estonian Financial Supervisory Authority (FSA) an authorisation to invade banking secrecy (the Draft) in case of conducting misdemeanour – an offence having a punishment of fine or detention – these examples indicate erosion in banking secrecy regulation.