Swiss Banks Achilles Heel Is Workers Selling Data

By Warren Giles
Bloomberg.com
Feb. 2, 2010

(Bloomberg) -- Swiss banks are discovering that the biggest threat to client privacy is their own workers.

German Chancellor Angela Merkel said yesterday her government may buy stolen data on Swiss bank accounts as French authorities comb information acquired from an employee of HSBC Holdings Plc's private bank in Geneva. The cases come two years after Germany paid 5 million euros ($7 million) for details filched from LGT Group in neighboring Liechtenstein.

"This is a kind of business war against Switzerland in which practices which were completely illegal have become acceptable," says Daniel Fischer, founder of Zurich-based Fischer & Partner law firm who specializes in banking law and fraud. "It's a huge danger for Swiss banks."

The willingness of governments to pay for stolen data is fanning tensions with France and Germany as Switzerland seeks to negotiate treaties implementing its commitment to cooperate with international tax probes. The Swiss government said last month it will draft a law barring officials from assisting foreign countries in cases involving theft of client details.