Swiss Offshore Bank

Offshore Banks in Switzerland

Swiss Banks have a certain mystique. Rafts of films have portrayed them as secretive bunker type locations, dug into a mountain, with secret access codes and numbered accounts. There are some Swiss banks which continue to operate in this way, but you won't get a numbered account anymore. And you certainly won't get a guided tour of the bank vault or a personal banker for less than 500,000USD.

However it's not only mystique that draws people to Swiss Banks. Its long history of neutrality gives Switzerland a natural stability that investors find appealing. It also has a long and (largely) successful record in wealth management. Most of all investors are drawn by its customer confidentiality, enshrined in law by the 1934 banking secrecy act.

Swiss Banking Secrecy

Switzerland has for a long time carefully maintained a reputation for banking secrecy that has attracted investors who look for less intrusive regulation. This became a source of good and bad publicity. While its stock as a centre of investment grew, Switzerland also grew famous as a place where rich despots deposited their money or retired. As the reputation grew that there was 'bad money' in Switzerland, so did international pressure for greater transparency.

More recent events from the 1990's onwards have really turned the screw on the banker's paradise. While self-exclusion from the EU allowed Switzerland to avoid having to give up its priceless secrecy for a short time, it is not at all certain that Switzerland will remain forever outside of the Union. Furthermore Switzerland allowed itself to come within the remit of the EU Tax Savings Initiative, which has allowed EU bureaucrats a foot in the door.

In June, 2004, new anti-money laundering regulations spelling the end of the legendary numbered account in its traditional format came into force.

Much more recently we have seen a scandal involving UBS and wealthy private US clients. After it was discovered by IRS inquiries that UBS had helped these clients to evade taxes, Switzerland has come under huge pressure to start releasing information. The problem for these US clients is that they thought they were covered by the Swiss penal code which distinguishes between tax fraud and tax evasion (which is not a criminal offence). They also thought they were covered by Swiss bank secrecy, but since UBS had opened up US branches to attract wealthy clients, they became exposed to the long-arm of US law.

It is uncertain how far Swiss bank secrecy will be pushed. In terms of investor privacy, a Swiss private offshore bank with no operations in high-tax countries offer greater confidentiality than a big multinational banking corporation. A double layer of privacy can be added through the use of a Swiss Trust Company. The laws governing these are distinct, and even in a direct attack on Swiss bank secrecy, the integrity of the Swiss Trust Company cannot be pierced.

Opening a Swiss Bank Account

Since each offshore bank has its own policies for accepting clients (some may also not accept US clients), opening a Swiss bank account can be somewhat difficult.

For upwards of 500,000USD you can get an account with a personal banking relationship and investment advice. You will have to go to Switzerland in person, with documentation such as passport, notarized proof of residence and an introduction from your home bank.
Numbered accounts exist, but will involve showing the same documentation mentioned above. Your account will have a number rather than a name, but the bank still knows exactly who you are.
For upwards of 10,000USD you can pay a 'financial expert' to smooth over a bank introduction for you. In this case it may be possible to open an account online, although you can expect to pay at least 1000USD for the introduction and risk the 'financial expert' running off with your savings. You will still have to provide documentation such as a passport and notarized proof of residence.

It is still possible to open an account offshore with a Swiss bank, but there is little reason for it. Through the Capital Conservator Group you have access to more private and convenient methods of storing wealth offshore, at a fraction of the price. Click for more information on opening an offshore account.