Germany investigates Swiss intelligence officers over espionage claims

Germany SwitzerlandGermany has launched an unprecedented investigation into three officers of Switzerland’s intelligence agency on suspicion that they spied on German tax investigators who were probing the activities of Swiss banks. News of the investigation comes three months after authorities in Germany arrested another Swiss intelligence officer, identified only as “Daniel M.”, for engaging in espionage on German soil. German media report that the three unnamed men are officers of Switzerland’s Federal Intelligence Service (NDB). They are suspected of engaging in the same type of activity as “Daniel M.”, namely monitoring German tax-fraud investigators.

The German government believes that billions of euros are deposited by its citizens in banking institutions in European tax-havens like Liechtenstein, Switzerland or Monaco. For the past decade, German authorities have resorted to bribing whistleblowers in offshore banks in order to acquire internal documents that reveal the identities of German citizens who are hiding their money in foreign bank accounts. It is estimated that over a hundred million dollars have been paid to whistleblowers by German authorities since 2006. The latter argue that the proceeds collected from unpaid taxes and fines more than justify the payments made out to whistleblowers. But the Swiss government has strongly criticized Berlin for encouraging Swiss banking sector employees to steal internal corporate information that often breaks Switzerland’s stringent privacy laws. It is believed that the NDB has been instructed by the Swiss government to monitor efforts by German tax-fraud investigators to approach potential whistleblowers working in the Swiss banking sector.

According to German media, the investigation against the three NDB officers was launched earlier this month. The news is likely to further complicate relations between Berlin and Bern. The two governments have been at loggerheads since the arrest of “Daniel M.”. Switzerland responded to the arrest by issuing arrest warrants for a number of German tax investigators. But Germany dismissed the move, saying it would refuse to comply with the warrants. On Monday, several European news media quoted German foreign minister Sigmar Gabriel, who described the alleged activities of the NDB as “incredible” and warned that the ongoing dispute between Germany and Switzerland could “wreck” their bilateral relationship.

Author: Joseph Fitsanakis | Date: 16 August 2017 | Permalink

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Swiss officials defend alleged spying on German tax-fraud investigators

SwitzerlandSenior Swiss government officials, including the defense minister and the director of the country’s intelligence agency, have defended Switzerland’s right to spy on European tax-fraud investigators who meddle in Swiss affairs. Earlier this week, German authorities announced the arrest of a Swiss national who was allegedly spying on the activities of German tax-fraud investigators in Frankfurt. According to German officials and media reports, the man, identified only as Daniel M., is an employee of the Swiss Federal Intelligence Service. The agency, known by its German-language initials, NDB, is Switzerland’s main intelligence organization.

As intelNews reported on Monday, Daniel M. was said to be monitoring the activities of German tax-fraud investigators who have been trying for years to stop German citizens from having secret bank accounts abroad. In the past decade, German authorities have paid nearly $100 million to employees of Swiss banks in return for information about the identities of German bank account holders in the small alpine country. The Swiss government has strongly criticized Berlin for encouraging Swiss banking sector employees to steal internal corporate information, a practice that goes against Switzerland’s stringent privacy laws. On Tuesday, Germany’s Foreign Minister, Sigmar Gabriel, summoned Switzerland’s ambassador to Germany, Christine Schraner Burgener, to the Foreign Ministry, in order discuss Daniel M.’s arrest. A press statement that the Foreign Ministry sent on Tuesday to the German media said that the meeting had been called “in the interest of German-Swiss friendship”.

But the Swiss do not appear to be interested in discussing. On Tuesday, Markus Seiler, Director of the NDB, defended his agency’s right to spy on anyone who “uses illegal methods in Switzerland to steal state or business secrets”. Seiler, who was speaking in Bern, classified all such practices as espionage targeting the the Swiss economy. Asked by reporters whether Daniel M. was an NDB employee, Seiler said he could not comment. But he defended the NDB’s right to “fight the theft of business secrets” and “uphold Swiss laws”. He also refused to specify whether the NDB is active in Germany, stating instead that the agency is “active at home and abroad”. Switzerland’s Minister of Defense, Guy Parmelin, who supervises the NDB’s activities, was equally general when asked to discuss the arrest of Daniel M. He said simply that he and other Swiss government officials had to “protect [the NDB’s] methods and sources”.

Author: Joseph Fitsanakis | Date: 04 April 2017 | Permalink

Germany arrests Swiss spy who was monitoring tax-fraud investigators

Frankfurt AirportAuthorities in Germany have announced the arrest of a Swiss national who was allegedly spying on the activities of German tax-fraud investigators in Frankfurt. According to prosecutors in the German state of Hesse, of which Frankfurt is the largest city, the Swiss man was arrested on Friday and is currently in custody. He has been identified only as Daniel M., and is believed to be in his mid-50s. According to news reports, German counterintelligence officers had been monitoring the suspect for over a year. They were issued a warrant for his arrest in December of last year, but waited until he was on German soil to arrest him. He was arrested at Frankfurt Airport.

German federal prosecutors said simply that Daniel M. was employed in the financial and banking sectors of Germany until early 2012. However after that time, he is believed to have been employed by “the intelligence service of a foreign power”. German officials refused to identify the “foreign power”. However, the Berlin-based German newspaper Die Welt said on Sunday that the Swiss man arrested on Friday is an employee of the Swiss Federal Intelligence Service. The agency, known by its German-language initials, NDB, is Switzerland’s main intelligence agency, tasked with safeguarding the security of the small alpine nation by collecting and analyzing information.

The question is, what was a Swiss spy doing in Germany, and why was he arrested? According to Die Welt, Daniel M. was monitoring the activities of German tax-fraud investigators who have been trying for years to stop German citizens from having secret bank accounts abroad. The German government believes that billions of euros are deposited by its citizens in banking institutions in European tax-havens like Liechtenstein, Switzerland or Monaco. For the past decade, German authorities have resorted to bribing whistleblowers in offshore banks in order to acquire internal documents that reveal the identities of German citizens who are hiding their money in foreign bank accounts. It is estimated that over a hundred million dollars have been paid to whistleblowers by German authorities since 2006. The latter argue that the proceeds collected from unpaid taxes and fines more than justify the payments made out to whistleblowers. But the Swiss government has strongly criticized Berlin for encouraging Swiss banking sector employees to steal internal corporate information that often breaks Switzerland’s stringent privacy laws.

It is believed that Daniel M. was arrested while monitoring efforts by German tax-fraud investigators to approach potential whistleblowers working in the Swiss banking sector. Soon after the Swiss man’s arrest, officers from Germany’s Federal Criminal Police Office (BKA) searched a hotel room, several apartments and a number of business premises in Frankfurt and nearby cities. It is worth noting that Frankfurt is a major global financial center, which also hosts the headquarters of the European Central Bank. If found guilty, Daniel M. could face up to 10 years in prison for espionage.

Author: Joseph Fitsanakis | Date: 01 May 2017 | Permalink

Swiss vote to give unprecedented surveillance powers to spy agencies

Federal Intelligence Service SwitzerlandVoters in Switzerland have strongly approved a proposed law that aims to expand the surveillance powers of Swiss intelligence agencies. The move is uncharacteristic of the Swiss, who have historically been skeptical of giving far-reaching surveillance powers to their government. In the late 1980s, Swiss public opinion was shocked by the revelation that the country’s Federal Military Department had spied without permission on tens of thousands of Swiss citizens for many decades under a top-secret project codenamed P-27. In response to the revelations, P-27 was ended, the Swiss intelligence agencies were reorganized, and stricter parliamentary controls were imposed on their activities. Today, even CCTV cameras are rarely used in Switzerland, while Google has not been given permission to incorporate the country’s streets into its Streetview application due to strict local privacy laws.

Opponents of the proposed law warned that it would end Switzerland’s long history of protecting civil liberties and would increase cooperation between Swiss and foreign spy agencies, thus harming the country’s tradition of political neutrality. But terrorist attacks in nearby Belgium and France have shaken public opinion in the small alpine country, which is home to numerous international agencies, including a regional branch of the United Nations. Consequently, nearly 66 percent of voters backed the proposal in elections on Sunday, which saw a 41 percent rate of participation. The result will allow the Swiss intelligence and security services, such as the Federal Intelligence Service, to put suspects under electronic surveillance using wiretaps, internet-based software, and hidden devices such as cameras and microphones.

Despite its long history of political neutrality, Switzerland is not unaccustomed to espionage scandals. In 2009, Switzerland’s Neue Zürcher Zeitung newspaper said that a number of listening devices, most likely of Israeli origin, had been discovered in a room designated for sensitive meetings on disarmament issues at the United Nations building in Geneva. In June 2013, the Swiss parliament blocked legislation designed to help the United States identify tax evaders, just days after it was revealed that the US Central Intelligence Agency had conducted an espionage operation targeting a Swiss bank executive. And in 2015, the Swiss Federal Prosecutor launched an investigation into claims that the country’s largest telecommunications provider, Swisscom AG, had been spied on by a consortium of German and American intelligence agencies.

Author: Ian Allen | Date: 26 September 2016 | Permalink

Swiss intelligence employee stole ‘millions’ of classified pages

NDB offices in Bern, Switzerland

By JOSEPH FITSANAKIS | intelNews.org |
Swiss authorities have warned Western intelligence agencies that their secrets may have been compromised by a disgruntled intelligence employee who stole “thousands or even millions of pages of classified material”. Citing “European national security sources”, Reuters said the employee at the center of the case worked for the NDB, Switzerland’s Federal Intelligence Service. He had been employed by NDB for eight years as a network technician with “full administrator rights” and had unrestricted access to the NDB’s computers, as well as to those of Switzerland’s Federal Department of Defense, under which the NDB operates. About a year ago, however, the unnamed technician apparently became disgruntled after his views on how to structure the NDB’s databases were allegedly sidelined or ignored. He eventually decided to use several portable hard drives to download countless classified documents from Swiss government servers and managed to carry them out of the office building where he worked, using a backpack. According to Swiss authorities, he intended to sell the classified information to foreign governments or black-market operatives. He was apprehended, however, after he tried to set up a numbered bank account with Swiss-based UBS bank, using what bank security officials described as “suspicious identification documentation”. Read more of this post