Discretion and the modern law of privacy

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The culture of discretion of the Daig has its counterpart in the modern law of privacy. The Swiss Federal Constitution guarantees the right to privacy, including the protection of personal data. The Federal Act on Data Protection, revised in 2020 and in force since 1 September 2023, regulates the processing of personal data by private persons and public authorities. The Banking Act protects the confidentiality of client information held by banks, a confidentiality whose violation remains a criminal offence.¹

The end of banking secrecy for foreign tax purposes, which Part E examines, did not abolish the confidentiality of banking relationships in Switzerland. Banks remain bound to keep their clients' information confidential towards third parties. Disclosure of such information is permitted only on a legal basis, such as the exchange of information with foreign tax authorities under international agreements, the cooperation with criminal authorities or the reporting of suspicious transactions. The transformation of banking secrecy has thus redrawn the line between confidentiality and transparency, without abolishing confidentiality as such.

The families of the Daig would recognise the logic of this line. Their culture of discretion protected privacy against curiosity, envy and publicity, within the law. They paid their taxes to the city, served it in public office and gave it their wealth in foundations. The modern Swiss financial centre, which has had to abandon the protection of foreign tax evasion, can find in the tradition of the Daig a model of discretion that is compatible with transparency towards legitimate authorities: privacy for the client, integrity towards the state.

Notes

Art. 13 Federal Constitution (SR 101) on the right to privacy; Federal Act on Data Protection of 25 September 2020 (FADP, SR 235.1), in force since 1 September 2023; Art. 47 Banking Act (SR 952.0). To be verified. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of August 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

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Discretion and the modern law of privacy

Notes

Setting up or expanding in Switzerland?