Silence Is Golden

A Swiss bank account no longer offers the ironclad protection it used to. Embarrassed by its image as the banker of choice for Third World tyrants and organized criminals, over the past decade Switzerland has introduced a raft of legislation designed to clean up its status as a financial haven, including anti-money-laundering laws that are among the toughest anywhere. The country now routinely cooperates in international criminal cases and has taken major steps after Sept. 11 to help track the financing of terrorism.

But on one issue Switzerland has remained unyielding: tax evasion by nonresidents. If a German dentist or...