Swiss Bank

When most investors think about offshore asset havens, the first prospect that comes to mind is the tradition of Swiss bank account. This has become a virtual stereotype of asset protection, probably because Swiss banks have been in this field of financial services the longest compared to other countries.

Switzerland has maintained a longstanding political distance between himself and the rest of Europe and has maintained neutrality through both World Wars (leading to charges that it collaborated with the Nazis), it is not a member of the EU, and has joined the United Nations in 2002. Christoph Meili, a security guard at the United Bank of Switzerland, became an informant leading by preventing the destruction of Holocaust-era financial records in 1997 and brought to public attention. Subsequently, Meili lost his job and received death threats, and became the first and only Swiss national to be granted political asylum in America. The descendants of Holocaust victims claim Swiss banks still hold some funds from their ancestors, despite disbursements in recent years.

Regardless of his past a bit dodgy, Switzerland has always had much to recommend it as a haven asset. It is a stable country with a western well-established system of laws, investors will receive no surprises after a sudden blow or a change of regime.

The financial institution in Switzerland Banking in Switzerland is known for stability, consistency, privacy and the protection of client assets and data. tradition of the nation's bank secrecy dates back to medieval times, but was formally codified in a law of 1934. All banks are regulated by the Swiss Federal Banking Commission, or FBC, which derives its authority from a series of federal laws. The bank is a major industry in Switzerland, employs about 5% to 6% percent of its workforce and production 14% to 15% of its annual GDP. An estimated one third of offshore funds are stored in Swiss banks. UBS and Credit Suisse are the two largest Swiss banks, which hold over 50% of all deposits in Switzerland.

Although the secret banking data is guaranteed by Swiss law, in practice it is not unlimited. While secrecy is protected, all bank accounts are linked to an identified person, and a judge or prosecutor can issue an order lifting "to allow access to law enforcement information relevant to a criminal investigation. Swiss law distinguishes between tax avoidance and evasion. If money is not declared, it is considered tax evasion, a crime under Swiss law. However, tax evasion, such as filing tax returns earned is considered a criminal offense.

Also, in an effort to stop the use of Swiss banks by criminals, the Money Laundering Act establishes standards for the identification of account holders, and requires reporting of suspicious transactions to the Office for Money Laundering . After 9 / 11, Switzerland was one of the country to participate in joint working groups targeting the financing of the terrorist organization Al Qaeda.

With high profile of Switzerland in the banking world, he came under pressure from many countries including the United States to change its privacy laws. Members of the European Union complain that their citizens use their convenient services nearby to avoid taxation at home. The EU is working on a harmonized tax regime among its member states and officials of the Swiss bank (and, according to some surveys, the public) are against further integration. However, some cooperation has been forthcoming, and since July 1, 2005, Switzerland has charged a withholding tax on interest earned by the personal accounts of Swiss nationals in the EU.

In 2001 and 2002, the Government of Italy has offered a limited amnesty for evaders with Swiss accounts, leading to the repatriatio.