THE handing over of 4,450 names of wealthy Americans who have offshore accounts in Switzerland is a timely reminder for Guernsey’s finance centre, according to KMPG tax partner Tony Mancini.

He said that while banks in Guernsey were unlikely to face a challenge from America’s Internal Revenue Service and have to hand over US account holders’ details, as has happened to Swiss banking group UBS AG, the island could not afford to become complacent.

Mr Mancini (pictured) said the latest episode reinforced how vital it was that the island continued its policy of positive engagement with governments such as the US and the UK, along with the rest of the G20 and OECD.

‘This is quite a significant development,’ said Mr Mancini. ‘Much of Switzerland’s success as a finance centre has been built upon its banking secrecy laws.

‘This deal suggests that those laws are no longer as effective as they were once perceived to be, when allegations of tax evasion are involved.

‘This development, and the agreement between the UK and Liechtenstein, indicate how jurisdictions that have relied upon banking secrecy laws are coming under intense pressure from other governments.’

Under Guernsey law, which does not allow for banking secrecy, Mr Mancini said suspicions of such activity must be reported and it was therefore unlikely that a case would emerge in Guernsey.