Swiss court orders new ruling for whistleblowers in cum-ex fraud case

The Federal Supreme Court stated that neither the prolonged duration of the proceedings nor the alleged bias were sufficient grounds to halt the case. The matter now returns to the High Court for a fresh decision.

The individuals, whose identities are not disclosed in court documents, were initially convicted in 2019 for charges including banking espionage and breaching banking secrecy. This verdict was later overturned on appeal in 2021.

According to German press agency DPA, the case involves Stuttgart lawyer Eckart Seith, who provided German authorities with Swiss bank documents that initiated investigations into the illegal cum-ex transactions. Two former employees of Bank J. Safra Sarasin were also reportedly charged.

Swiss banking secrecy laws criminalize the disclosure of confidential client information by bank employees or third parties, without an exemption for whistleblowing. The cum-ex fraud scheme, which cost the German treasury an estimated €12 billion, involved rapid trading of shares around dividend payout dates to fraudulently claim tax refunds.