All You Need To Know About Swiss Banking
Author: Joseph Kenny

There is a common misconception that people who cannot store
their unaccounted wealth in their own country open accounts in
Swiss banks. Even though this may be true to an extent, Swiss
banks are well known for their sophisticated and discreet
banking services.

Many of the rich and famous like film stars, business
entrepreneurs, top government officials, presidents, etc, are
reputed to have Swiss bank accounts. Then again, it is also said
one need not be a multi-millionaire to open a Swiss bank
account.

Brief Background of the Swiss Banking System

One of the most prosperous and economically advanced nations,
Switzerland has the world's largest gross domestic product
(GDP). There are nearly 400 banks in Switzerland, which range
from the "Two Big Banks", to smaller banks, serving single
communities or selective clients. Considered as the world's
largest offshore financial center, the Swiss banking sector is
renowned for its privacy, stability and protection of their
customer's information and assets. The Federal Banking
Commission (FBC) regulates these banks.

Opening a Swiss Account

Often freely available, a Swiss bank account provides total
confidentiality, strict privacy, and is tax-free. However,
certain documents are required as proof to open a Swiss account.
For example, people who are not residents of Switzerland need to
furnish their passports, along with a passport size photograph.
Depending on the profession, a current bank statement would be
required to determine the client's current financial condition.
Along with this, certain personal information, like the date of
birth, country of origin, etc., is also required.

A useful feature of Swiss banking is that it can also be done
via correspondence as long as the customers follow bank rules
and regulations. The bank and customer could interact through
the Internet, telephone or snail mail.

However, a drawback of Swiss banking is that non-residents are
expected to pay a hefty amount as deposit, and, the smaller
accounts are more expensive to maintain. There is a clause
especially for US citizens wherein they are expected to refrain
from making any business transaction through their Swiss
accounts, to keep their account privacy intact.

Deposit

A security deposit is needed in case the customer wants to
obtain a credit card. Approximately 1.5 to 2 times the monthly
credit limit is demanded, depending on the bank the customer
chooses. This deposit is returned when the customer decides to
discontinue the credit card, and has paid all outstanding bills.


Confidentiality

There are legends about mysterious numbered accounts in Swiss
banks. Some high security bank accounts are given pseudonyms or
special names instead of issuing them in the name of the
customer, to preserve the anonymity of the customer. This number
or name is used wherever the customer is referred. Moreover,
even bank employees are expected to respect the customer's
privacy, the failure of which could land them in prison for
several months.

However, Swiss banks, being very particular about preventing
money laundering, crosscheck the authenticity of the information
provided by the customer. If, during the scrutiny, the bank
finds the information of a potential or existing customer
connected to some criminal activity, a Swiss judge or prosecutor
issues a lifting order. These investigations could include
international criminal investigation for tax fraud, insider
trading, or the infamous terrorist financing of recent times.

Closing of an Account

Despite a few negative notions about Swiss banking, closing an
account is said to be easier than expected. No financial penalty
is demanded, and neither is the money held hostage, like it is
done in other off shore banking.

To conclude, the secrecy and discreet nature of Swiss banking
makes them convenient and dependable. This not only helps
customers to save money, but also is a viable means of attaining
economic superiority in the business world and society as a
whole.


About The Author: Joe Kenny writes for the UK personal finance
sites http://www.ukpersonalloanstore.co.uk and also
http://www.cardguide.co.uk