Global Study Names Switzerland as Capital of Bank Secrecy

Switzerland and the United States are the most secretive major financial centers in the world, according to a global ranking compiled by a group campaigning for more transparency, according to Reuters. 

The Tax Justice Network's study found Switzerland to be the "global capital of bank secrecy" while it placed the United States in second place because its share of global offshore financial services has increased steadily.

The study, which is published every two years, checks countries using several criteria including how much information they provide about the ownership of trusts or foundations and the degree to which they respect money-laundering rules.

The analysis looked at 110 countries.

John Christensen, director of the network, said the study showed that while some financial centers said they were becoming more transparent, the amount of information they released depended on who requested it.

"Rich, Western countries get information but poorer countries in Africa do not," he said, adding that secrecy enabled money laundering and theft.

"You have tax evasion going on every level. We are seeing the systematic looting of countries," said Christensen. "The sums involved are enormous."

Other countries that were ranked among the most significant secretive centers included the Cayman Islands, Luxembourg and Germany. Hong Kong and Singapore were also among the top 10.

The study adds to a wider debate about the use of such centers after the publication of the Panama Papers, which showed that some companies set up in tax havens may have been used for money laundering, arms and drug deals as well as tax evasion.

That embarrassed leaders worldwide who had interests tied to secretive business concerns.