People often think that people who can't hide their money in their own country open bank accounts in Switzerland. Even though this may be true to some degree, Swiss banks are known for being sophisticated and private.
Many rich and famous people, like movie stars, business owners, top government officials, and even presidents, are said to have bank accounts in Switzerland. People also say that you don't have to be worth a lot of money to open a Swiss bank account.
A Brief History of Switzerland's Banking System
Switzerland is one of the most wealthy and economically advanced countries in the world. It has the highest gross domestic product in the world (GDP). In Switzerland, there are almost 400 banks. They range from the "Two Big Banks" to smaller banks that serve specific communities or clients. The Swiss banking sector is known for keeping their customers' information and assets safe and private. It is thought to be the world's largest offshore financial centre. This is done by the Federal Banking Commission (FBC).
Setting up a Swiss bank account
A Swiss bank account is usually free to open, and it gives you complete privacy, no taxes, and no one can find out about it. To open a Swiss account, you need to show proof with certain documents. For example, people who don't live in Switzerland have to show their passports and a picture that fits in a passport. Depending on the job, a client's current bank statement may be needed to find out how well they are doing financially. Along with this, you also need to give some personal information, like your date of birth, country of origin, etc.
One good thing about Swiss banking is that it can be done by mail as long as customers follow the rules and regulations of the bank. The bank and the customer could talk on the phone, over the Internet, or in the mail.
One problem with Swiss banking is that non-residents have to put down a lot of money as a deposit, and it costs more to keep small accounts open. To keep the privacy of their accounts, US citizens must follow a rule that says they can't do business through their Swiss accounts.
Deposit
If a customer wants to get a credit card, they have to put down a security deposit. Depending on the bank the customer chooses, the customer is asked to pay about 1.5 to 2 times the monthly credit limit. This deposit is given back to the customer when they decide to stop using the credit card and have paid all of their bills.
Confidentiality
There are stories about strange accounts with numbers in Swiss banks. To protect the customer's privacy, some high-security bank accounts are given pseudonyms or special names instead of the customer's real name. The customer is always called by this number or name. Also, even bank employees are expected to respect the privacy of their customers. If they don't, they could spend a few months in jail.
But because Swiss banks are very careful to stop money laundering, they double-check the customer's information to make sure it's true. During the review, if the bank finds information about a potential or current customer that is linked to a crime, a Swiss judge or prosecutor issues an order to lift the ban. These investigations could look into international crimes like tax fraud, insider trading, or the well-known financing of terrorists in recent years.
How to Close an Account
Even though there are some bad ideas about Swiss banking, it is said that closing an account is easier than people think. No financial penalty is asked for, and the money isn't held as a ransom like it is in other types of off-shore banking.
To sum up, Swiss banking is convenient and reliable because it is private and private. This not only helps customers save money, but it's also a good way to get ahead in the business world and in society as a whole in terms of money.
