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Swiss ‘spy’ goes on trial in Germany

A Swiss man accused of spying on German officials who were hunting tax cheats goes on trial in Frankfurt on Wednesday, in a convoluted case that has strained ties between Bern and Berlin.

Published: 18 October 2017 08:39 CEST
Swiss 'spy' goes on trial in Germany
Frankfurt, where the trial will take place. Photo: Amelie Querfurth/AFP
Daniel M, 54, was arrested in Frankfurt in April on espionage charges after he compiled information on officials tasked by the German state of North Rhine-Westphalia with ferreting out stashes of wealth hidden at Swiss banks.
   
He is also believed to have placed a mole inside the German tax office, though this person's identity is still unknown.
   
Switzerland had been seeking the identities of three German tax officers, hoping to build a case against them for illegally obtaining banking data, which is protected under the country's strict secrecy laws.
   
The country's banks had come under intense pressure in recent years as several German states started buying CDs or USB memory sticks allegedly containing data on German taxpayers who had parked their fortunes across the border.
 
   
German investigators say they believe that Daniel M. was in the employ of Bern's spymasters by July 2011 at the latest.
   
Along with an associate working for a security firm in Frankfurt, he allegedly collected birthdates, telephone numbers and private addresses of German tax officials.
   
The spying claims sparked outrage in Germany, with Foreign Minister Sigmar Gabriel rebuking Switzerland over the scandal and summoning Bern's envoy for clarification.
   
The case was especially embarrassing for Switzerland, which in 2015 had signed a deal with the European Union to exchange bank data starting in 2018 as part of an international pledge to clamp down on tax cheats.
 
Big risks, at what gain? 
 
Amid the uproar, German and Swiss media reported that the accused's operation had unravelled by chance, possibly because he had walked into a trap set by Werner Mauss, a former top spy dubbed Germany's James Bond.
   
Daniel M, a former policeman and a high-ranking security officer at Swiss banking giant UBS, reportedly passed on a CD containing banking data to a German contact — who had in fact been working for Mauss.
   
The data turned out to be erroneous, but Mauss reported the exchange to UBS, which in turn passed it on to Swiss authorities who arrested M in February 2015 for breaching banking secrecy.
   
During the investigation, M apparently told Swiss investigators that he had been working for Bern to spy on German authorities.
   
But a copy of a summary of the interrogation ended up in the hands of German authorities through Mauss, leading eventually to M's arrest in Frankfurt.
   
German prosecutors say he was paid 3,000 euros ($3,500) a month over half a year by his Swiss handlers.
   
He also received 13,000 euros for the personal details of tax officials, of which 10,000 euros he gave to his associate.
   
Separately, for the mission to place a mole in the tax office, M was promised 90,000 euros.
   
He received 60,000 euros of the sum but passed on most of it to unknown individuals, according to German prosecutors.
   
He risks up to five years in jail.
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MONEY

Is it easy for a foreign resident get a loan in Switzerland?

When it comes to borrowing money from a Swiss bank, nationality may play a role in some cases, but not in others. This is what you should know about this process.

Published: 3 June 2021 12:31 CEST
Updated: 26 February 2024 11:24 CET
Is it easy for a foreign resident get a loan in Switzerland?
Getting a losn in Switzerland is subject to many conditions. Photo by Claudio Schwarz/Unsplash

Like almost everything in Switzerland, consumer loans are regulated by legislation, in this case the Consumer Credit Act.

It defines a loan as between 550 and 80,000 francs, “offered by commercial providers of financial services”. Lower or higher amounts are not subject to the Consumer Credit Act.

As is the case in many other countries, Swiss banks have strict criteria about who they lend money to. After all, no financial institution wants to deal with people who are not creditworthy.

Whether or not a foreign national can borrow money from a bank depends on their permanent place of residence and permit status.

As a rule, Swiss lenders don’t give loans to non-residents. So if you reside abroad, there is practically no chance that a bank in Switzerland will lend you money.

However, some financial institutions make exceptions for cross-border workers. If you fall under this category, you can use this interactive tool, select “ Permit G” under “Residence Permit” and see what, if any, options, there are.

READ MORE: EXPLAINED: What cross-border workers should know about taxation in Switzerland

If you are a foreign national but have a permanent residence status (Permit C), your chances of getting a loan are practically the same as those of Swiss citizens — provided, of course, that you meet all the requirements set by lenders (see below).

What about other permit holders?

If you have a B Permit, you might be approved for a loan, depending on how long you have had this permit — obviously, the longer the better.

However, “you may be offered a higher interest rate or a limited loan amount. This is because of the statistically higher probability that you will return to your home country. Some lenders require the loan to be repaid by the time the B permit expires”, according to consumer comparison site comparis.ch 

Holders of other, temporary or conditional permits are not accepted.

What conditions — other than residence permit — should you fill to be considered for a loan?

You must be at least 18 years of age, though additional restrictions may apply to applicants under 25 — for instance, a higher interest rate or a limited loan amount. That’s because “lenders are generally more cautious with young applicants as their financial circumstances are usually less settled and the risk of default is deemed to be higher,” Comparis noted.

The same cautious approach applies to pensioners, especially those who have no regular income. The social security payments (AHV/AVS) do not count as income for the purpose of the loan.

There is also other eligibility criteria, based on employment status and salary. People with a regular income have a higher chance of obtaining a loan than those who are self-employed, temporarily employed, work on hourly basis or, logically, unemployed.

Other factors, including your existing debts, are also taken into account in the decision process.

Basically, lenders favour applicants with a stable income and good financial standing, in much the same way as supplemental health insurance carriers prefer young and healthy people.

Keep in mind that if your loan application is rejected, this will be recorded in the database of the  Central Office for Credit Information, making it more difficult, though not impossible, to get a loan in the future.

READ ALSO: Does having a good credit score matter in Switzerland?

The same rules do not apply to American citizens

That’s because Swiss and European banks are subjected to US demands to disclose the assets of Americans overseas in order to prevent tax evasion.

As adherence to these requirements is a major headache for the banks and in some cases also violates their country’s privacy laws, financial institutions prefer not to deal with Americans at all, even those who are permanent residents.

If you are a US citizen who also has Swiss nationality, you may have an easier time of it, but could still face hurdles in obtaining loans and other banking services.

There is no immediate relief in sight, although many organisations representing Americans abroad are lobbying in Washington to change the existing legislation.

READ ALSO: Why are Americans being turned away from Swiss banks?

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