Swiss Bank Accounts

Opening a bank account can be difficult if you are an expatriate. For example, you will need to have a proof of address, a letter from your employer, bills, etc...

However in a tax heaven like Switzerland for example, brokers can help you open a bank account in minutes if you have enough money.

Swiss bank accounts have long been used mostly for their detail to secrecy. This loyalty to confidentiality has caused many unsavoury thoughts against the clients who use a Swiss bank account, and the product itself has gained a not-so-legal reputation. In defence of the Swiss bank secrecy policy, however, it must be stated that the policy is lifted for criminal crimes such as gun smuggling and drug trafficking, but not for tax evasion because, in Switzerland, tax evasion is not a crime.

History

After Louis XVI exiled the protestant bankers from France in 1865, they continued to fund the kings from Geneva. After all, what better client could there be but a king who had the ability to pay back any monies borrowed, plus an insatiable appetite for lavish spending? Secrecy became a vital concern due to the need for the kings to hide the fact their banker was a protestant heretic.

In 1934, the Federal Banking Act was passed, making a breach of bank secrecy a criminal offence, punishable by hefty fines and imprisonment. There were two major reasons the act was passed:

  • Hitler made a public proclamation in 1931, which stated that any German citizen found to hold foreign capital would be punished by death. The Gestapo began an intensive search of Swiss banks, and three Germans were put to death. This prompted the Swiss government to strengthen bank secrecy.
  • In 1932 over 2000 French elite were discovered owning Swiss accounts. With a government that refused to fight against tax fraud, the French leftist movement tried to denounce this harsh program. The leftists tried to gain control of the French accounts in Switzerland with little success.

    The numbered account

    The numbered Swiss bank account is so highly protected, only a handful of employees have access to the information; and then, only to a portion of the whole. Names, addresses and account numbers are all kept in separate files, and locked down tight in a vault. Obtaining access to the full file is totally impossible. There are no maintained databases with information about the numbered account. Even when a transfer is requested, it must be done through the account manager or by credit card. Due to the fact that even accepting a transfer indicates there is in fact an account, the account manager creates a conversation that detects the identity of the client. If the client refuses the transfer, the bank disavows any knowledge of the said account.

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