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TAX

Force banks to make tax checks: finance minister

Swiss banks could be forced to carry out checks on the tax status of foreign assets they hold under a new "clean money" strategy being proposed by the finance minister, it was reported on Sunday.

Force banks to make tax checks: finance minister
Swiss Federal Chancellery (File)

Eveline Widmer-Schlumpf wants banks to go a step further than requiring a tax declaration from foreign customers, according to the Sonntags Zeitung.

She wants them to examine suspected cases of evasion to ensure they are respecting the law.

Sonntags Zeitung paper described the proposal as “explosive” as banks have so far fought against compulsory checks.

Widmer-Schlumpf, who as well as being finance minister is also the current Swiss president, will put the suggestion to ministers on Wednesday the newspaper said, citing several sources close to the finance department.

Widmer-Schlumpf is under pressure to reach an agreement with the United States over undeclared assets in Swiss accounts, as Switzerland tries to maintain the reputation of its banking industry.

US authorities are probing 11 Swiss banks as part of a clampdown on offshore tax evasion — an investigation that recently prompted the collapse of Wegelin, the country’s oldest private bank.

Three of its bankers have been charged with conspiring to help American clients hide funds.

In the coming months, Bern is expected to finalise a tax accord with Washington, similar to one already drawn up with Britain and Germany.

“We support the intentions of the finance minister,” president of Widmer-Schlumpf’s Conservative Democrats party, Hans Grunder, told the Sonntags Zeitung.

The head of the Socialists Christian Levrat said the suggestions “seem to go in the right direction.”

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TRAVEL

Travel: Germany downgrades Covid-19 risk status of USA

The United States is no longer classed as a "high incidence area" by Germany - it has returned to being a "risk area".

Travel: Germany downgrades Covid-19 risk status of USA
People walking in New York in May 2020. Photo: DPA

The Robert Koch Institute (RKI) changed the risk classification of the United States on March 7th.

The US was previously classed as a “high incidence area” by the RKI. These are regions where the incidence is over 200 Covid-19 cases per 100,000 residents with a period of seven days.

However, now it’s a “risk area” – which is used by German authorities to describe a region with an increased risk of infection, usually above 50 coronavirus cases per 100,000 people in seven days.

Other factors are also taken into account, such as measures in place.

It means the travel requirements for people coming from the US to Germany have changed.

However, entry from the US is only permitted in a few narrow exceptions. Proof of urgent need to travel is required, German authorities say. You can find more information in the story below.

READ MORE: When are Americans allowed to travel to Germany?

What happens if I need to travel from the US to Germany?

If you are a German resident from the US, or fall into one of the exception categories, you still face strict testing and quarantine measures.

All travellers must have a negative Covid-19 test result at the latest 48 hours after they enter Germany. It must be presented to authorities if they request it.

Some individual airlines may however still say that travellers have to present a coronavirus negative test result before boarding is allowed. You should contact your airline before travel to check.

Both PCR tests as well as rapid anitgen tests are accepted if they meet the quality standards. Testing is still mandatory even if travellers are vaccinated or have recovered from a coronavirus infection. 

People returning from “risk zones” are required to self-isolate for 10 days after they arrive.

The quarantine can usually be ended with a negative coronavirus test result taken at the earliest five days after arriving in Germany.

However, states can differ on their travel regulations so check with your local authority before travelling.

Everyone entering Germany is also required to register online.

New “high incidence areas”

In the RKI’s latest travel classification list, Sweden, Hungary and Jordan are now classed as “high incidence areas” which means stricter testing and quarantine rules apply.

Areas of “variant concern” include Austria’s Tyrol region, the UK, Brazil, Portugal and Ireland. Even stricter rules apply for these regions.

You can find out more information about travel rules in our story below.

READ MORE: What you need to know about Germany’s latest rules on foreign travel

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