Swiss-US Data Exchange

Payment21® is not subject to the Swiss-USA Tax Treaty Amendment

Payment21® does not fall under the provisions of the tax treaty between Switzerland and the United States of America (Swiss–USA Tax Treaty Amendment).

Payment21® operates as a third-party processor and e-wallet service, i.e. Payment21® is not a bank; hence it is not categorized as a financial institution that has to grant administrative assistance to tax authorities.

The tax treaty between the two countries enables US authorities to obtain data on groups of American clients holding Swiss bank accounts, without knowing their identities. Switzerland grants administrative assistance, including for group requests, in cases where the US tax authorities produce clear evidence of a suspected offense by a bank and can detail a “pattern of behavior,” according to the amendment. The US enforces a filing requirement for financial accounts in a foreign country, i.e. Report of Foreign Bank and Financial Accounts (FBAR), when the aggregate value of the accounts exceeds $10,000 at any time during the calendar year. An additional topic is the Foreign Account Tax Compliance Act (FATCA) filing requirement in the US.

In the context of third-party processing and non-US e-wallet services, these provisions apply to the civic duties of US citizens but do not apply to the regulatory requirements of financial intermediaries outside of the US and in particular not to the services rendered by Payment21®.

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