It's Relatively Secret
Switzerland has some of the tightest banking secrecy laws in the world. Law prohibits a Swiss banker from revealing information about your account to anyone except if legally ordered to do so. This makes a Swiss bank account an excellent vehicle for shielding assets from prying eyes and civil lawsuits.
It's Not For Everyone
According to the article "Swiss Bank Accounts: Separating Fact From Fiction" from August 20, 2008, on the CNBC website, most Swiss banks are interested in investing the money deposited in their banks, not just providing a small amount of interest to depositors. Depositors, therefore, may be given a minimum amount with which to start an account, a figure often close to $250,000.
Bottom Line
Given the high floor on starting an account and the large amount of paperwork required, Swiss bank accounts only make sense for those with an interest in hiding a large amount of money. However, according to the article "Silence Is Golden," published on September 8, 2002, on the "Time" magazine website, a Swiss bank cannot accept money it believes to have criminal origins.
References
- OpenEdition Books. "2. The Implications of the SWIFT Affair for Switzerland." Accessed Sept. 8, 2020.
- CiteSeerX. "Swiss Banking Secrecy: Origins, Significance, Myth," Page 55. Accessed Sept. 8, 2020.
- Swiss Bankers Association. "The Fight Against Money Laundering." Accessed Sept. 8, 2020.
- U.S. Department of Justice. "Justice Department Reaches Final Resolutions Under Swiss Bank Program." Accessed Sept. 8, 2020.
- Swiss Bankers Association. "FATCA (Foreign Account Tax Compliance Act)." Accessed Sept. 8, 2020.
- CORE. "Recognition and Enforcement of Foreign Civil Judgments in Switzerland." Accessed Sept. 8, 2020.
- Swiss Financial Market Supervisory Authority. "Combating Money Laundering in the Context of Financial Market Supervision." Accessed Sept. 8, 2020.
Writer Bio
Michael Wolfe has been writing and editing since 2005, with a background including both business and creative writing. He has worked as a reporter for a community newspaper in New York City and a federal policy newsletter in Washington, D.C. Wolfe holds a B.A. in art history and is a resident of Brooklyn, N.Y.