Annex to the Declaration of Confidentiality

Preamble

The following excerpts from Swiss law must be read by employees. It is particularly important to take note of them regarding clients in the financial services sector.

Wording of legal texts as of January 1, 2019.

Swiss Criminal Code

Art. 143 - Unauthorised obtaining of data

  1. Any person who for his own or for another’s unlawful gain obtains for himself or another data that is stored or transmitted electronically or in some similar manner and which is not intended for him and has been specially secured to prevent his access shall be liable to a custodial sentence not exceeding five years or to a monetary penalty.

  2. The unauthorised obtaining of data to the detriment of a relative or family member is prosecuted only on complaint.

Art. 143bis Unauthorised access to a data processing system

  1. Any person who obtains unauthorised access by means of data transmission equipment to a data processing system that has been specially secured to prevent his access shall be liable on complaint to a custodial sentence not exceeding three years or to a monetary penalty.

  2. Any person who markets or makes accessible passwords, programs or other data that he knows or must assume are intended to be used to commit an offence under paragraph 1 shall be liable to a custodial sentence not exceeding three years or to a monetary penalty.

Art. 144bis - Damage of data

  1. Any person who without authority alters, deletes or renders unusable data that is stored or transmitted electronically or in some other similar way shall be liable on complaint to a custodial sentence not exceeding three years or to a monetary penalty. If the offender has caused major damage, a custodial sentence of from one to five years may be imposed. The offence is prosecuted ex officio.

  2. Any person who manufactures, imports, markets, advertises, offers or otherwise makes accessible programs that he knows or must assume will be used for the purposes described in paragraph 1 above, or provides instructions on the manufacture of such programs shall be liable to a custodial sentence not exceeding three years or to a monetary penalty. If the offender acts for commercial gain, a custodial sentence of from one to five years may be imposed.

Art. 147 - Computer fraud

  1. Any person who with a view to his own or another’s unlawful gain, by the incorrect, incomplete or unauthorised use of data, or in a similar way, influences the electronic or similar processing or transmission of data and as a result causes the transfer of financial assets, thus occasioning loss to another, or immediately thereafter conceals such a transfer shall be liable to a custodial sentence not exceeding five years or to a monetary penalty.

  2. If the offender acts for commercial gain, he shall be liable to a custodial sentence not exceeding ten years or to a monetary penalty of not less than 90 daily penalty units.

  3. Computer fraud to the detriment of a relative or family member is prosecuted only on complaint.

Art. 162 -  Breach of manufacturing or trade secrecy

Any person who betrays a manufacturing or trade secret that he is under a statutory or contractual duty contract not to reveal, any person who exploits for himself or another such a betrayal, shall be liable on complaint to a custodial sentence not exceeding three years or to a monetary penalty.

Art. 273 - Industrial espionage

Any person who seeks to obtain a manufacturing or trade secret in order to make it available to an external official agency, a foreign organisation, a private enterprise, or the agents of any of these, or, any person who makes a manufacturing or trade secret available to an foreign official agency, a foreign organisation, a private enterprise, or the agents of any of these, shall be liable to a custodial sentence not exceeding three years or to a monetary penalty, or in serious cases to a custodial sentence of not less than one year. Any custodial sentence may be combined with a monetary penalty.

Art. 305bis - Money laundering

1 Any person who carries out an act that is aimed at frustrating the identification of the origin, the tracing or the forfeiture of assets which he knows or must assume originate from a felony or aggravated tax misdemeanour shall be liable to a custodial sentence not exceeding three years or to a monetary penalty.

1bis. An aggravated tax misdemeanour is any of the offences set out in Article 186 of the Federal Act of December 14, 1990, on Direct Federal Taxation and Article 59 paragraph 1 clause one of the Federal Act of December 14, 1990, on the Harmonisation of Direct Federal Taxation at Cantonal and Communal Levels, if the tax evaded in any tax period exceeds 300 000 francs.

2 In serious cases, the penalty is a custodial sentence not exceeding five years or a monetary penalty. A custodial sentence is combined with a monetary penalty not exceeding 500 daily penalty units.

A serious case is constituted, in particular, where the offender:

  1. acts as a member of a criminal or terrorist organisation;

  2. acts as a member of a group that has been formed for the purpose of the continued conduct of money laundering activities; or

  3. achieves a large turnover or substantial profit through commercial money laundering.

3  The offender is also liable to the foregoing penalties where the main offence was committed abroad, provided such an offence is also liable to prosecution at the place of commission.

Art. 320 - Breach official secrecy

  1. Any person who discloses secret information that has been confided to him in his capacity as a member of an authority or as a public official or which has come to his knowledge in the execution of his official duties shall be liable to a custodial sentence not exceeding three years or to a monetary penalty.
    A breach official secrecy remains an offence following termination of employment as a member of an authority or as a public official.

  2. The offender is not liable to any penalty if he has disclosed the secret information with the written consent of his superior authority.

Art. 321ter - Breach of postal or telecommunications secrecy

  1. Any person who in his capacity as a public official, employee or auxiliary of an organisation providing postal or telecommunications services reveals to a third party details of customers' post, payments or telecommunications, opens sealed mail or tries to find out its content, or allows a third party the opportunity to carry out such an act shall be liable to a custodial sentence not exceeding three years or to a monetary penalty.

  2. The foregoing penalties also apply to any person who by deception causes a person bound by a duty of confidentiality in terms of paragraph 1 to breach his obligation of secrecy.

  3. A breach of postal or telecommunications secrecy remains an offence even after termination of employment as a public official, employee or auxiliary of an organisation providing postal or telecommunication services.

  4. A breach of postal or telecommunications secrecy does not carry a penalty if it is carried out in order to determine the identity of the entitled person or to prevent loss or damage being occasioned.

  5. Article 179octies is reserved, together with the federal and cantonal provisions on the obligations to give evidence or provide information to a public authority.

Federal Act on Data Protection (FADP)

Art. 4 - Principles

  1. Personal data may only be processed lawfully.

  2. Its processing must be carried out in good faith and must be proportionate.

  3. Personal data may only be processed for the purpose indicated at the time of collection, that is evident from the circumstances, or that is provided for by law.

  4. The collection of personal data and in particular the purpose of its processing must be evident to the data subject.

  5. If the consent of the data subject is required for the processing of personal data, such consent is valid only if given voluntarily on the provision of adequate information. Additionally, consent must be given expressly in the case of processing of sensitive personal data or personality profiles.

Art. 35 - Breach of professional confidentiality

  1. Anyone who without authorisation wilfully discloses confidential, sensitive personal data or personality profiles that have come to their knowledge in the course of their professional activities where such activities require the knowledge of such data is, on complaint, liable to a fine.

  2. The same penalties apply to anyone who without authorisation wilfully discloses confidential, sensitive personal data or personality profiles that have come to their knowledge in the course of their activities for a person bound by professional confidentiality or in the course of training with such a person.

  3. The unauthorised disclosure of confidential, sensitive personal data or personality profiles remains an offence after termination of such professional activities or training.

Swiss Federal Act on Banks and Savings Banks (BA)

Art. 47 - Breach of banking secrecy

1 Whoever intentionally does the following shall be imprisoned up to three years or fined accordingly:
      a) disclose confidential information entrusted to them in their capacity as a member of an executive or supervisory body, employee, representative, or liquidator of a bank or a person in accordance with Article 1b, as member of a body or employee of an audit firm or that they have observed in this capacity;
      b) attempt to induce an infraction of the professional secrecy;
      c) disclose confidential information to third parties or use this information for own benefits or the benefit of others.
1bis Whoever enriches themselves or others with an action in accordance with (1)(a) or (c) shall be punished with imprisonment for up to five years or fined accordingly.
2 Whoever acts in negligence shall be penalized with a fine of up to CHF 250,000.
3 …​
4 The violation of the professional confidentiality shall remain punishable even after a bank license has been revoked or a person has ceased his/her official responsibilities.
5 The federal and cantonal provisions on the duty to provide evidence or on the duty to provide information to an authority shall be exempted from this provision.
6 Prosecution and judgment of offenses pursuant to these provisions shall be incumbent upon the cantons. The general provisions of the Swiss Penal Code shall be applicable.

Federal Act on Financial Institutions (FinIA)

Art. 69 - Violation of professional confidentiality

  1. A custodial sentence not exceeding three years or a monetary penalty shall be imposed on any person who wilfully:

    1. discloses a secret entrusted to them in their capacity as a director or officer, employee, agent or liquidator of a financial institution or of which they have become aware in said capacity;

    2. attempts to induce a violation of professional secrecy;

    3. discloses to other persons a secret disclosed to them in violation of letter a or exploits such a secret for their own benefit or for the benefit of others.

  2. A custodial sentence not exceeding five years or a monetary penalty shall be imposed on any person who obtains a pecuniary advantage for themselves or another person through an action as detailed in paragraph 1 letter a or c.

  3. A fine not exceeding CHF 250,000 shall be imposed on persons who commit the foregoing acts through negligence.

  4. Any person who violates professional confidentiality remains liable to prosecution after termination of the official or employment relationship or exercise of the profession.

  5. The federal and cantonal provisions relating to the duty to testify and the duty to provide information to the authorities are reserved.

  6. The cantons are responsible for the prosecution and adjudication of acts under this provision.

Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading (FinMIA)

Art. 142 - Exploitation of insider information

  1. Any person who has insider information and who knows or should know that it is insider information or who has a recommendation that he or she knows or should know is based on insider information shall behave inadmissibly when he or she:

    1. exploits it to acquire or dispose of securities admitted to trading on a trading venue or DLT trading facility which has its registered office in Switzerland or to use derivatives of such securities;

    2. discloses it to another;

    3. exploits it to recommend to another to acquire or dispose of securities admitted to trading on a trading venue or DLT trading facility which has its registered office in Switzerland or to use derivatives of such securities.

  2. The Federal Council shall issue provisions regarding the admissible use of insider information, in particular in connection with:
    ..securities transactions in preparation of a public takeover offer;

    1. a special legal status on the part of the recipient of the information.

Art. 143 - Market manipulation

  1. A person behaves inadmissibly when he or she:

    1. publicly disseminates information which he or she knows or should know gives false or misleading signals regarding the supply, demand or price of securities admitted to trading on a trading venue or DLT trading facility which has its registered office in Switzerland;

    2. carries out transactions or acquisition or disposal orders which he or she knows or should know give false or misleading signals regarding the supply, demand or price of securities admitted to trading on a trading venue or DLT trading facility which has its registered office in Switzerland.

  2. The Federal Council shall issue provisions regarding admissible conduct, in particular in connection with:

    1. securities transactions for price stabilisation purposes;b. buyback programmes for a company’s own securities.

Art. 154 - Exploitation of insider information

  1. A custodial sentence not exceeding three years or a monetary penalty shall be imposed on any person who as a body or a member of a managing or supervisory body of an issuer or of a company controlling or controlled by them, or as a person who due to their holding or activity has legitimate access to insider information, if they gain a pecuniary advantage for themselves or for another with insider information by:

    1. exploiting it to acquire or dispose of securities admitted to trading on a trading venue or DLT trading facility which has its registered office in Switzerland or to use derivatives of such securities;

    2. disclosing it to another;

    3. exploiting it to recommend that another acquire or dispose of securities admitted to trading on a trading venue or DLT trading facility which has its registered office in Switzerland or to use derivatives of such securities.

  2. Any person who through an act set out in paragraph 1 gains a pecuniary advantage exceeding one million francs shall be liable to a custodial sentence not exceeding five years or a monetary penalty.

  3. Any person who gains a pecuniary advantage for themselves or for another by exploiting insider information or a recommendation based on insider information disclosed or given to them by a person referred to in paragraph 1 or acquired through a felony or misdemeanour in order to acquire or dispose of securities admitted to trading on a trading venue or DLT trading facility which has its registered office in Switzerland or in order to use derivatives of such securities shall be liable to a custodial sentence not exceeding one year or to a monetary penalty.

  4. Any person who is not a person referred to in paragraphs 1 to 3 and yet who gains a pecuniary advantage for themselves or for another by exploiting insider information or a recommendation based on insider information in order to acquire or dispose of securities admitted to trading on a trading venue or DLT trading facility which has its registered office in Switzerland or to use derivatives of such securities shall be liable to a fine.

List of further regulations to be observed:

  • Swiss Criminal Code 137, 138, 139 Unlawful appropriation, Misappropriation, Theft

  • FADP 6, 7, 11a, 12 ff, 34 Data protection

  • TCA 43 Obligation of confidentiality

  • UWG 6 Manufacturing and trade secrets

  • ATSG 33 Duty of confidentiality under social insurance law

  • Agreement on the Swiss banks’ code of conduct with regard to the exercise of due diligence (CDB 20)