<p align="Justify">Truth And Fiction About Opening A Swiss Bank Account
"If you can actually count your money then you are not really a
rich man." J. Paul Getty, American business executive
1892-1976."
To most people having a Swiss Bank Account is something for the
super rich, crooks, dishonest government officials or just a
good way of "hiding away one's ill-gotten gains." That's nothing
but fiction and a common plot used over and over again in a lot
of Hollywood's B movies. There's nothing illegal or "fishy"
about wanting, or having a Swiss bank account.
The truth is Swiss banks welcome accounts from foreign residents
all over the world - especially the "West," and a vast number of
average Americans have accounts all over Switzerland. The main
reason for wanting a Swiss bank account has to deal with the
legendary privacy such an account provides.
The Swiss have some of the tightest regulations in the entire
world as far as who can gain access to your account. If you're
looking for a way to "protect' assets from snoopy investigators,
a Swiss account can be the ideal place.
The "big five" Swiss banks are listed below. All are familiar
with foreign accounts.
- The Swiss Credit Bank in Zurich
- The Union Bank of Switzerland
- The Bank Leu (AG) in Zurich
- The Swiss Bank Corporation in Basel
- The Swiss Volksbank in Berne
To locate the current addresses of these banks and many others,
visit a Swiss Consulate located in most major US cities, or
visit your local library for further information.
Opening a Swiss account is much the same as with any bank. If
you're making a truly large deposit most people prefer to do so
in person. If you decide to open an account by mail, you'll
first have to request the forms needed to open an account; fill
them out, then get your signature verified at a Swiss Consulate
or any of their affiliated banks in this country. This procedure
is much like what one does to open a mutual fund or other
securities account and is nothing more than a bit of red tape
any financial institution puts you through and not an invasion
of your privacy.
While we're on the subject, its best to send your deposits by
money order which offers the most privacy. Bank drafts are also
acceptable, but avoid using bearer bonds or securities when
making your deposit or you're required to file a lot of red-tape
at tax time. For protection have your lawyer execute a "power of
attorney" over your Swiss account. Unlike American law the Swiss
still consider such legal instruments valid even after a
depositor's death.
If you're not comfortable leaving a "power of attorney" with the
bank, discuss options with your legal counsel in case of your
disability, or death.
OK, so much for the "how," of opening a Swiss Bank account, now
it time for a little information on the "Why." The main reason
for having a Swiss bank account for most people has to do with
keeping one's financial status a secret, and protecting one's
assets from "attack."
Swiss banks offer the same range of services of other banks:
checking accounts, savings accounts, custodial accounts, etc.
They also will hold other valuables like stock certificates,
gold, silver, and other property for a fee. Like other Swiss
accounts, they are protected under Swiss law from any snooping
unless you're engaged in criminal activity.
When it's time to make a withdrawal, it can be paid in the
currency of your choice. Swiss francs, American dollars,
whatever you would like.
Unlike American law where law enforcement agencies, the judicial
system, and private citizens can gain access to all kinds of
financial information under Swiss law, except for extraordinary
circumstances neither the bank's officers or the bank's
employees are allowed to reveal any information, relative to any
account to anyone, including the Swiss government.
No private citizen, or their legal representative can ever
receive any type of information about any one's Swiss bank
account under any set of conditions. That includes all types of
legal proceedings that the Swiss classify as "non-criminal
behavior."
The Swiss consider tax evasion and many other "crimes" under US
law as "political offences." Things like divorce, inheritance
disputes and bankruptcy cases are examples of "private matters,"
and as such the secrecy of the account is protected from any
legal action to verify the presents of, or attempts to seize any
assets.
There are some notable exceptions. Three types of activity which
the Swiss consider illegal, and are bound by treaty with the
United States to "open" the account for possible legal
proceedings are: organized crime activities, drug trafficking,
and "insider trading" of securities. In instances of this kind,
the Swiss authorities have the final say on whether or not to
reveal any information.
The Swiss currently charge a hefty 35% tax on interest earned in
Swiss accounts but Americans get 30% of that tax refunded by
showing that they're not Swiss residents. To claim the refund
there is a catch 22. You must identify yourself, which of course
give up your secrecy.
If you maintain the account in Swiss francs, and the franc
increases in value relative to the American dollar, you may also
be liable for a capital gains tax when you withdraw the money
and convert it back to United States dollars. If you sustain
losses from any decrease in value they are usually not
deductible.
There are no US restrictions on having Swiss bank accounts, but
current IRS regulations require you tell them what foreign
accounts you have when you file your annual income tax return.
If you answer yes, the Internal Revenue Service requires more
paperwork.
Interest earned in a foreign account is still taxable under
present US Tax laws, but you usually get to offset foreign taxes
that you may be required to pay. Consult with a tax expert to
learn what present regulations are since they change frequently
and are beyond the scope of this report.
"Let us all be happy, and live within our means, even if we have
to borrow the money to do it with."
Artemus Ward 1834-1867
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