Open a "Swiss Bank Account"

In 1934 the Swiss passed a law which made it illegal for any bank to disclose any information about an account, including the fact of whether an account actually exists or not.

This act, passed in response to the growing strength of the Nazi revolution, and underpinned by a long-standing commitment of the Swiss to the notion of privacy, was the embryo of the now infamous “Swiss Bank Account”.

For most of us such accounts are the domain of corrupt politicians, the mega wealthy, arms dealers, despicable dictators and mythical arch villains and spies. For the most part the mention of the words “Swiss Bank Account” conjures up images of mysterious big black sedans bearing faceless men, of eyes of cold steel guarding the cache of secret numbers that are the key to untold riches.

Like all legend, this one is somewhat based in fact, however the “Swiss Bank Account” is a far more mundane creature than this and something that is accessible to most people from most parts of the world.

In fact, opening an account with a Swiss bank is much the same as opening an account with any bank, and provided one has good reason to do so, provides some useful advantages over banking in many countries.

Firstly and foremost Swiss law decrees absolute secrecy of banking details in all civil matters including divorce, lawsuits, creditor claims, inheritance disputes and the like.

This secrecy does not extend to any activities that are criminally related, but the Swiss authorities do not regard tax evasion as a criminal offence (it is regarded as a political matter).

Put simply, unless a foreign government can prove that an individual has committed one of the specified crimes that is also a crime in Switzerland, and link the individual to an identified bank account used for transactions associated with that crime, the bank may not release any banking details to anyone without their customer’s consent.

While the cloak and dagger stuff may be beneficial to some, there are other advantages to opening a Swiss account which are more applicable to the common person.

Switzerland is a politically and socially stable economy, with a reliable legal system and a history of economic prosperity. The Swiss have a long standing tradition of excellence in banking which has been legitimately earned and their bankers offer outstanding levels of experience, knowledge and service.

Furthermore, the banking system is based on the concept of a full service bank, with banks performing services such as securities brokerage, investment counseling and portfolio management.

Put simply, if you put your money in a Swiss bank account it will still be there as the rest of the world’s financial institutions crumble.

There are basically three ways to open a Swiss account. Firstly you can pay someone to do it for you at a cost of between $US400 to $US1000 depending on the account type. Just do a search with the keywords “open Swiss bank account” and you will find a number of firms who are willing to take your money to open the account for you.

If you are likely to be dropping into Switzerland at any time then you can simple drop into one of the banks and open an account in person. Its handy in this case to have some record of past earnings just to prove to the bank that you are on the “up and up” and you’d also need to be carrying the minimum deposit in one form or another.

If you value your hard-earned cash then opening an account via the mail is the best option.

Choosing this option is time consuming as you have to wade through the huge variety of services that Swiss banks offer, however it is your money so a little extra time spent finding out how to best use it is not a bad way to go.

While most of the banking options include the standard services such as checking accounts, credit cards and internet banking, you may have to search harder to find a bank that will purchase and store bullion for you.

In basic terms there are four types of accounts that may be opened.

1. The Swiss Postal Account
This account is offered by the banking arm of the Swiss postal service, requires no minimum balance, has minimal fees, but does not have a checkbook. Unfortunately the bank offers few investment offers but the account can be useful if you are trading on the internet (for example) and choose to pay all your bills via the bank’s card services.

It is the bank of choice should you want to be able to drop the “just send it to my Swiss bank account” line at dinner parties and can easily be searched out on the net.

2. The Standard Account
One notch up from the postal account is the standard account that gives you the added options of phone banking, online trading, enhanced investment options and checkbook. This account does require a minimum balance of somewhere around $US4000 and has small annual fees.

3. The Investment Fund Account
If you want to want to ‘play the markets’ then this account is the one to opt for. To do so, however, carries a necessity for a $5000 minimum balance. With this account you fix an investment strategy with the bank and they do all the securities trading for you. Come withdrawal time they simply liquidate the necessary shares and forward you your money.

4. The Swiss Numbered Account
The stuff dreams are made of, expensive dreams. We’re talking a minimum balance of $US100,000 but for that you buy total discretion, attention from the best people in the bank, total discretion and the ability to purchase anything that is traded on the public markets.

Also you get the pleasure of only a few select bank officials knowing who the name behind the numbers is.

The only hitch with this one is that you have to apply for it in person, but of course with that sort of money to hide away a trip to Switzerland is part of the business.

Opening your Swiss Bank Account
You’ve made one trip to the Swiss Consulate, waded through the list of Swiss banks that they’ve given you, sent off for all the information and forms and painstakingly gone through every one of them. Finally after an eternity of sorting and resorting you have identified an account with a bank that you want for yourself, what next?

Once you’ve filled out the requisite forms, take them and your passport to your closest Swiss Consulate, or an affiliated bank and get your signature verified; simple red tape.

At this point it is wise to contact the bank and ascertain whether they need any extra information (such as proof of income for the past whatever years) and whether they need a deposit to be forwarded with the forms. In all likelihood a deposit won’t be required until after the account is verified and then it is prudent to send it off as a money order.

After you have everything the bank needs then just mail it off and wait a couple of weeks. The bank will get back in touch with you and tell you where to go from there.

Remember that banks exist because they want your money, and if everything is on the up and up they’ll be happy to take it.

Depositing and Withdrawing Money
There is no secret to depositing and withdrawing money from your Swiss bank account, it is simple as trading with checks, money orders and credit cards.

Should you want to divulge your secrecy then you can also simply wire money back and forth through your local bank accounts.

Clearly, the best way to operate your secret Swiss bank account is to have others deposit money in there for you and for you to pay for goods and services through the vehicles of that bank. That way, no one other than the bank will know and remember, they can never, ever tell.

Some words of caution
While Swiss banks are under legal obligation not to disclose account details to anyone (except in criminal cases), in many instances, such as with the IRS, it is the obligation of the individual to disclose their financial affairs with their local taxation authorities.

There is no way that such authorities can find out about a Swiss bank account that is held by someone however to deny ownership of such an account in court is to commit perjury. In the case of divorce proceedings for example, it is quite legal to have a fortune tucked away in such an account but if you are asked whether you have such an account, it is illegal to deny it. Food for thought.

One further concern of operating a Swiss bank account is that Swiss authorities impose a 35% withholding tax on all interest earned by the account.

Much of that (depending on your country of residence) can be refunded but in order to do so you have to disclose the account to your local authorities. Bye, bye secrecy.

Internet banking
Swiss banks do offer full internet banking services, however, such activity is restricted in many countries including the USA. Nevertheless, as time progresses it is probable that many of these countries will ease up on this restriction and that such accounts will be viable in these countries.

Most recently an online Swiss bank, Swissnetbank.com have set up shop and are offering a simple fee free worldwide moneymarket account. This account operates in three currencies, the Swiss Franc, the Euro, and the US dollar.

Deposits and withdrawals can be made in any of the currencies via nominated accounts and you can shift your money into any of the three currencies with a few strokes of the keyboard.

Its not a Swiss bank in the time honored tradition of Swiss banks but it is another feather in the cap of those who are unwilling to let their wealth dwindle away in some petty interest bearing account somewhere.

Let’s see how long it takes 007 to jump onto this one.