The application of the 'Multilateral Convention on Mutual Administrative Assistance in Tax Matters' means that Switzerland has come into line with international standards on taxation. Over a hundred other states have already signed-up to the agreement. This will ensure that financial information on bank accounts held by citizens of certain countries in Switzerland and vice-versa will be shared annually. Switzerland will begin collecting such data from 2017 onwards and begin sharing it with select countries from 2018.
To prevent losing its status as a global financial hub, Switzerland signed the convention in 2014. The Swiss parliament approved the deal in 2015 and the treaty was ratified in 2016.
Previously Switzerland would only provide banking information if requested by another country with which it had signed a deal to prevent double taxation.