Switzerland is committed to the implementation of the Automatic Exchange of Information Standard (AEOI) set up by the Organisation for Economic Co-operation and Development (OECD). This new international standard for AEOI has been validated by Switzerland and implemented through the Federal Law on the Automatic Exchange of Information in tax matters (LEAR) which came into force on 1 January 2017.

Many countries are concerned (countries concerned) by this standard, which requires the collection of certain data and information on the Bank's clients. Switzerland has signed an agreement for the introduction of AEOI with the following partner states (Partner States): the 28 member states of the European Union (including Great Britain), Australia, Canada, Guernsey, Jersey, Isle of Man, Iceland, Japan, Norway and South Korea. Agreements have been signed with 43 other countries that are expected to be implemented in 2018. The list of Switzerland's partner states can be consulted at any time on the website of the State Secretariat for International Finance (SIF), which can be accessed via this link: www.sif.admin.ch .

This new standard has consequences for clients holding an account with the Banque d'expatriés de l'île du Sud (NISEBK) and domiciled for tax purposes in a country with which Switzerland has concluded agreements for the automatic exchange of information. As such, NISEBK is required to transmit annually to the Federal Tax Administration (FTA) personal data as well as data concerning accounts of clients domiciled in a partner state. The FTA in turn informs the tax authorities of the country of residence concerned.

These exchanges will start with Switzerland as from 2018. The data exchanged will cover the previous calendar year, for the first time for the year 2017.