Accounts with Swiss banks are always in high demand among the most prestigious financial products globally. Swiss bank accounts being so special is hardly surprising considering stringent privacy laws and excellent financial management in Switzerland together with its proverbial political and economic stability.
Those curious to learn why Swiss bank accounts are so valuable and sought-after by HNWIs, governments, and corporations, are welcome to read the International Wealth article on the subject.
Those in need of Swiss bank account setup and company incorporation in Switzerland, are welcome to contact the International Wealth team for assistance. To book your free initial consultation with us, please use the Contact Us Now section of the International Wealth corporate website.
Why are Swiss bank accounts so special?
With its stringent banking laws, Switzerland protects privacy and confidentiality of Swiss bank customers to the utmost. Being the cornerstone of the country’s financial culture, bank secrecy is firmly protected by the law. This means that bank employees are prohibited from disclosing any information about customers or their accounts to third parties, except under the corresponding court decision. With their strict confidentiality policies, Swiss banks are preferred by individuals who wish to keep their financial transactions confidential as well as corporations trying to maintain trade secret protection.
Political and economic stability in Switzerland is another reason that explains why Swiss bank accounts are so special. A neutral state that has never been a member of major conflicts or wars, Switzerland is a safe jurisdiction for both corporations and individuals placing their funds therein. Franc, the country’s national currency, is among the strongest and the most stable in the world, while its political and economic stability has become proverbial. Combined, these factors have turned Swiss banks into a safe place to keep your funds during political or economic storms in any other jurisdictions.
Another factor that distinguishes Swiss banks from any other banking institutions is an impeccable record in financial management and security. Known for its prudent conservative approach to investments and banking, Switzerland has managed to maintain the reputation of a safe and reliable jurisdiction to keep your money in. To protect customer funds and ensure secure and efficient transaction processing, Swiss banking institutions have greatly contributed to advanced bank technologies and security systems.
Apart from this, Swiss banks offer a wide range of financial products and services, from traditional savings and investment accounts to more complex financial instruments like the ones mentioned below:
- offshore trusts
- funds
- private banking.
The above services are rendered by highly qualified and experienced professionals. This is what makes Swiss banks a popular choice for HNWIs in need of state-of-the-art personal financial expertise and support.
In addition, Swiss banks come with lower tax rates compared to many other jurisdictions, which makes them a draw for UHNWIs and corporations willing to optimize their taxes and reduce tax liabilities. Switzerland has made favorable tax agreements with many jurisdictions worldwide and is thus able to offer its bank customers lower income and profit taxes.
You are welcome to benefit from free initial consultations and expert assistance the International Wealth team offers its customers as to selecting the right foreign bank accounts:
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on which jurisdiction is best for
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on which jurisdiction is best for your business, preferred tax regime, company structure.
Secrecy throughout the centuries
Ever since the early XVIIIth century Geneva has been the preferred place for the French royal family, aristocracy, and European elite to keep their wealth. In 1713, the Swiss government issued laws that prohibited bankers from disclosing bank customer information. As a result, a mighty secrecy culture was born that later on became the defining characteristic of Swiss banking.
In 1934, the Federal Act on Commercial Banks and Savings Banks a.k.a. the Swiss Bank Act was adopted. Its most famous part, namely, Article 47, declares the disclosure of customer details or information a crime no matter the information recipient, including, inter alia, the government, unless such customers consented to the above disclosure or a criminal case was brought. Thereunder, potential offenders may spend up to 5 years in prison. Article 47 is at the root of one of the strictest bank secrecy acts.
WIth wealth easily crossing international borders at present, the safety and stability Swiss banks offer are highly appealing for HNWIs not eager to answer questions as to where their income comes from. Even more so that these are the banks in a peaceful and politically neutral jurisdiction that always sticks to due diligence principles and guidelines.
In movies, we can often see long tunnels leading to underground bank vaults and depositories as well as bank clerks and officials boasting impeccable reputation as far as customer confidentiality principles are concerned. Oftentimes, the words of James Bond from The World Is Not Enough (1999) are quoted: “What awaits the world if you can’t trust a Swiss banker?”
Be it bank fraud, tax evasion or a mere financial scandal, financial troubles involving HNWIs nearly always have something to do with Swiss bank accounts. In movies and newspaper articles about popular celebs, Swiss banking institutions are pictured as fortresses of security that never disclose customer identity and value confidentiality above all other things.
It is for several valid reasons that UHNWIs set up Swiss bank accounts.
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Customer confidentiality protection
The main draw of Swiss banks is the bullet-proof confidentiality protection they offer to their customers. With the bank secrecy the local government establishes, it is actually illegal to disclose the identity of a Swiss bank account holder. In the absence of valid legal grounds, customer names may not be disclosed to either investigators or foreign governments. The bank violating the above provisions may be brought to account. This makes Swiss banks the world’s most trusted and confidential financial establishments.
The truth however is that there is no rule without an exception. If a bank customer is legitimately prosecuted for say drug trafficking, organized crime, or insider trading, local laws demand that the banking system disclose any confidential or privileged information. Very few banks risk declining such a request. Yet, under normal circumstances, no one will ever learn you have a Swiss bank account.
For more information on how you can open a personal bank account in Switzerland in 2023, please follow the link above.
Full deposit compensation
If a disaster like a fire, a flood, or a tornado strikes, your Swiss bank account will remain intact. According to the SBA (i.e., Swiss Bankers Association), all Swiss bank accounts are fully secured for losses from disaster events. This means, any resulting customer losses will be 100% compensated. Financial risks the account holder faces will be minimal. You will seldom come across this level of protection in any other corner of the world.
You are welcome to learn about some other services the International Wealth team renders for those about to set up Swiss bank accounts:
Swiss franc – one of the world’s safest currencies
The Swiss national currency is among the safest in the world. With next to zero inflation, the Swiss franc offers the financial security you will hardly come across anywhere else.
What is behind the everlasting stability of the Swiss franc? It is no secret that most world currencies are currently digital and users thereof perceive them as such. Unlike them, the Swiss franc is backed up by at least 40% of the county’s gold reserves.
The Swiss franc is not the only stable financial instrument the jurisdiction boasts. In the light of the Swiss stable economy, the competition on international markets has very little effect on Swiss banking. A Swiss bank account is protected on many sides:
- economy that does not suffer from international economic conflicts
- Swiss francs
- local laws.
For those interested, International Wealth offers to set up a Swiss personal bank account remotely.
Simple and secure banking
Due to the perfect combo of super low risks and super high confidentiality, Swiss bank accounts boast high attractiveness for depositors. The Swiss economy is exceptionally stable, and local banks are next to flawless.
Setting up a Swiss bank account is real for almost every adult. Basic KYC requirements are rather transparent and thus are accepted by many. To open a Swiss bank account, you will have to produce your passport together with a document that verifies your current place of residence. The required minimum balance depends on your account type and the bank itself.
Taking care of their international customers is a success formula for both the Swiss banks and the Swiss economy on the whole. Relying on The Guardian, almost 50% of CHF 7.9 trillion (or USD 8.6 trillion) in AuM in Switzerland are held by foreign customers. With one tenth of jobs in Switzerland, the banking sector earns one tenth of the country’s GDP. Even though the local banking industry comes with over 240 banks, these are Credit Suisse and UBS that control over 50% of all the Swiss assets, the Guardian claims.
World-famous for its safety, stability, and confidentiality, the Swiss banking system has been a safe money haven for decades. Regardless of whether you would like to protect assets, grow your investment portfolio, or optimize taxes, a Swiss bank account is exactly what you need. It is a perfect choice for those seeking the best financial services and top confidentiality.
For any further information and consultations as to Swiss bank accounts and opening thereof, you are welcome to message the International Wealth team at info@offshore-pro.info.
