Swiss Banking Made Easy
Date: 12/30/2007Monday, Dec. 31, 2007
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Switzerland is the world's leading country for offshore banking and finance.
Surveys show that when individuals choose a bank, the major attraction is a bank's reputation. Certainly, Switzerland's solid financial reputation supports the claim that it serves as "banker to the world." It is estimated that Swiss banks manage at least one-third of all assets held offshore…$4 trillion in 2006, over 10 times the Swiss GDP.
Three factors have made Switzerland the world's largest center for private banking:
1. Switzerland is politically neutral, so people from non-neutral nations keep their money safe here because they know it's an enduring safe haven.
2. Switzerland's ultra-conservative financial policies have produced a consistent high value of its currency, the solid Swiss franc.
3. Switzerland enjoys statutory banking secrecy, a concept it has defended stoutly against the massed tax collectors of the world, while following adequate defenses against money-laundering.
Switzerland has endured despite the compromises forced under pressure from the European Union, the United Nations, and assorted critics, such as the Organization for Economic and Co-operation Development (OECD). Much of the left-leaning, "politically correct" elite neither understands nor accepts the traditional Swiss attitude that defends financial privacy, and exalts strict banking secrecy guaranteed by law.
The importance of the banking system and its secrecy is ingrained in Swiss national life. In 1992 and 2001 national polls, Swiss voters rejected membership in the European Union, rightly fearing EU bureaucratic interference with Swiss privacy and banking laws. National ballots have rejected specific proposals to ease Swiss bank secrecy laws and recent public opinion polls reaffirm this position. A few months ago, the leading conservative Swiss political party increased its vote for the second time in five years in national parliamentary elections.
Most of the world's largest multi-national companies and many thousands of law-abiding foreigners bank with the Swiss. Indeed, 2006 statistics from the Central Bank reveal that foreign customers now account for 60% of assets administered by Swiss financial institutions.
Swiss bankers have earned worldwide respect because of their highly efficient and discreet approach to serving their clients. Simple, efficiently modern processes allow Swiss banks to offer services at comparative fees, and banks benefit from an active national capital investment market. An exceptionally high savings rate and a constant inflow of foreign capital combine to permit banks to offer lower-cost borrowing.
With your Swiss bank account, you can invest in CDs, stocks, bonds, mutual funds, and commodities from any nation; buy, store, and sell gold, silver, and other precious metals; and buy tax-deferred life insurance and annuities. Swiss banks can act as your agent to buy and hold other types of assets, including real estate or art. Of course, Swiss banks also issue international credit and ATM debit bank cards.
Bank officers and staff are fluent in English and many other languages. The banks are equipped for fax, wire, e-mail, or telex…and instructions are carried out immediately. Or just phone your own personal Swiss banker who handles your account. Swiss local time is six hours ahead of the eastern United States.
Perhaps the major downside is the high minimum deposits required by most banks. Only a few years ago, many banks were content with initial deposits of only a few thousand dollars. But Switzerland's popularity among foreign investors, along with the cost of administering "know your customer" laws, has led to sharp increases in deposit minimums, now minimally averaging $250,000. The leading private banks will ask a minimum of $1 million or more for investment accounts.
Swiss banks often require that foreigners applying to open a new account do so in person. Because of the tedious U.S. government red tape and reporting involving Americans, many Swiss banks simply do not want to do business with U.S. citizens--unless a great deal of money is involved. But they will accept accounts from trusts, family foundations, and corporations controlled by U.S. citizens.
Robert E. Bauman JD
For International Living
P.S. I recommend Swiss bankers you should contact in the upcoming January issue of International Living magazine…sign up now to get access to my full article.
Editor’s Note: Robert E. Bauman (along with experts in taxation and citizenship) is the author of The Complete Guide to Offshore Residency, Dual Citizenship, and Second Passports. This guide will change everything --your tax burden...your investment opportunities...your retirement outlook...your quality of life...your peace of mind...even your sense of personal safety and security. Plus, reserve your copy now…and save 15%.
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