An Insider Spills Swiss Bank Secrets—and Wikileaks Gets The List

The Julius Bär Gruppe—also known as simply Julius Baer—is one of the most powerful Swiss banks. It is certainly one of the most discreet: As a private bank, its financials are not public knowledge.

Who its clients are? A wind and a rumor—

—until now: The former COO of its Cayman Islands operations, Rudolf Elmer, has just handed over to Wikileaks some discs with the banking details of some 2,000 high net worth individiauls and corporations.

That’s right: Two thousand. Rich people, corporations, even other banks.

Elmer is on his way to Switzerland, to stand triel for violating Swiss banking secrecy regulation—but the cat’s out of the bag.

According to The Observer, which is all over this story, and got an interview with Elmer which they are running this morning—

"What I am objecting to is not one particular bank, but a system of structures," he told the Observer. "I have worked for major banks other than Julius Baer, and the one thing on which I am absolutely clear is that the banks know, and the big boys know, that money is being secreted away for tax-evasion purposes, and other things such as money-laundering – although these cases involve tax evasion."

Elmer was held in custody for 30 days in 2005, and is charged with breaking Swiss bank secrecy laws, forging documents and sending threatening messages to two officials at Julius Baer.

Elmer says: "I agree with privacy in banking for the person in the street, and legitimate activity, but in these instances privacy is being abused so that big people can get big banking organisations to service them. The normal, hard-working taxpayer is being abused also.

"Once you become part of senior management," he says, "and gain international experience, as I did, then you are part of the inner circle – and things become much clearer. You are part of the plot. You know what the real products and service are, and why they are so expensive. It should be no surprise that the main product is secrecy … Crimes are committed and lies spread in order to protect this secrecy.

This civic high-mindedness is bullshit, of course: It looks clear that Elmer and Julius Baer had a falling out, and Elmer absconded with a list of clients. Legal machinations to and fro, and now the endgame—and the revelations.

Now, Elmer has handed over the list of clients and their data to Wikileaks—but the list will not be released by Julian Assange’s group just yet. Clearly, this is the sword of Damocles over Swiss authorities and Julius Baer, clearly a last (and desperate) attempt for Elmer to weasel his way out of jail time.

But if this all has come to light this morning—in so spectacularly public a fashion—then it’s all over: Swiss authorities can’t let Elmer slide, so Elmer will be forced to put-up-or-shut-up.

So get ready! The next Wikileaks revelations are coming! This time, from finance.