| Swiss Bank Account Frequently Asked Questions |
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| Written by James Summers |
| Tuesday, 25 May 2010 20:35 |
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Swiss banks have earned a reputation around the world for providing sophisticated and discreet banking services. There are more than 400 banks in Switzerland. Banks are licensed by the Swiss Federal Government through its Banking Commission, and may operate throughout the country. A number also have offices or other representation in foreign countries.
Swiss banks have earned a reputation around the world for providing sophisticated and discreet banking services. There are more than 400 banks in Switzerland. Banks are licensed by the Swiss Federal Government through its Banking Commission, and may operate throughout the country. A number also have offices or other representation in foreign countries. Are Swiss Banks Safe? Switzerland has a reputation for conservative money management. The government covers small, personal bank deposits with insurance. The banking industry is so important to Switzerland's economy that any type of banking crisis would get full attention of both the banking industry and of Switzerland's government. Swiss Bank Services Offered Some banks specialize in only a few banking services, whereas others provide a wide range. As in most of continental Europe, individuals usually buy and sell stocks and bonds through their banks. The Swiss banks collectively have a long reputation for managing investment portfolios for their clients, and providing other services such as estate planning, wealth management, trust companies, etc., for individual customers. Private Banks - What is the difference? Private Banking in Switzerland is regarded as the safest and most prestigious banking in the world. Swiss Private Banks are used by royalty, movie stars, sports stars and the super rich. What is special about Swiss bank secrecy? This bank secrecy is among the strictest in the world and stems from an age-old historical tradition. It is established in Swiss law. Any banker who reveals information about you without your consent risks several months in prison. The only exceptions to this rule concern serious crimes such as gun smuggling and drug trafficking. Bank secrecy is not lifted for tax evasion. This is because failure to report income or assets is not considered a crime in Switzerland. As such, neither the Swiss government, nor any other government, can obtain information about your bank account. They must first convince a Swiss judge that you have committed a serious crime punishable by the Swiss Penal Code. Bank secrecy will not be lifted for private matters such as inheritance or divorce if you have kept your banking information strictly confidential. It is up to plaintiffs to prove that the account exists if they wish the judge to pursue the case. In this respect, the numbered account provides the maximum degree of confidentiality. Swiss law distinguishes between tax evasion (non-reporting of income) and tax fraud (active deception). International legal assistance is only granted with respect to tax fraud. In domestic prosecutions, banking secrecy may be lifted by court order in cases of tax fraud or particularly severe cases of tax evasion. Inheritance, divorce, and civil tax matters present special problems vis-a-vis banking secrecy because these are civil rather than criminal matters. How to deal with tax matters which foreign governments consider a crime but which Switzerland considers a civil offense is under active political discussion at present (spring 2009). What is a Numbered Account? Numbered accounts (or pseudonym accounts) are not very different from normal bank accounts. The usual account records omit reference to the customer's name or other identifying information, replacing it with a code number or the pseudonym. The relationship between the code number or pseudonym and the actual customer is known only to a few senior managers and their secretaries within the bank. It is important to emphasize that a Swiss bank has an obligation to know the true identity of both the account holder and its beneficial owner, and that there is no such thing as an anonymous account. Because of the constant awareness and strict enforcement of bank secrecy, there is actually little need for numbered accounts, and it should be noted that they incur additional overheads for the bank (it is more difficult to validate transactions to and from such accounts). For all these reasons, the stories one reads about anonymous, numbered accounts are fiction. How can I open a Swiss bank account? If you would like to open a Swiss Bank Account, first find out what type of account you need. A Private Swiss Bank Account is for HNWI's (High Net Worth Individuals) and offers a prestigious service. Regular Swiss Bank Accounts can be expensive to maintain. Private banking services are usually offered to clients with assets of a minimum of $500,000 USD. But even with lower amounts of funds, if you feel, that you qualify as a potential client, you can talk to the banks advisory group. They can advise you on international estate planning structure, offshore trust or foundation for your assets or simply look for an appropriate account type for your funds. A clients country could have legislation which is in conflict with Switzerland's law and can put the bank in a position of conflict. Clients from such a country may not be accepted for this reason (many Swiss banks put the USA into this category, particularly if they have their own offices in New York). All of this means that non-residents will find opening a Swiss bank account more-or-less difficult, depending on their particular residency, even when as an individual they would be a desirable client. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Looking to find the best Swiss Bank Account? Visit www.swissbankservices.com to find the best advice on Swiss Banking for you. |