For years, Swiss banks have been considered the safest and the most secure in the world. Yet, times are changing, and a Swiss bank account today is not likely to protect you from audits and tax payments in case they are unavoidable. If global regulators decide so or if corresponding court decisions follow, even a Swiss bank account may be frozen.
The Organization for Economic Cooperation and Development (OECD) came up with the Common Reporting Standard (a.k.a. CRS). Later on, many other jurisdictions including Switzerland joined it. Known as the safest jurisdiction in the world to keep your funds in, Switzerland and its government had to accept the terms suggested by the US (FATCA) and transfer the info on the US resident accounts to the IRS.
At present, Switzerland remains a reliable banking hub but the confidentiality if offers is by far not like it used to be 10 to 20 years ago. Under these circ*mstances, the answer to the question whether Swiss banks are safe depends on the target audience.
You are welcome to set up a bank account in Switzerland remotely.
Swiss banks and their security level at present
As of 2023, absolute bank secrecy is a utopia not just in Switzerland but in any other jurisdiction as well. Under the CRS standard, all customer accounts with Swiss banks are transparent for tax authorities that can see them through.
FYI: as provided for under the CRS regulations at present, Switzerland shares CRS info with over 100 jurisdictions globally, including the US.
Yet, whether Swiss banks are safe is a bit of a different debatable issue compared to the compliance with international rules and regulations on transparency and countering tax evasion.
Swiss laws are top-of-mind
With its stringent legislative norms providing for major penalties and even imprisonment for those guilty of customer and account information disclosure, Switzerland still boasts a great degree of confidentiality. Unless account access is permitted under the corresponding statutory or constitutional regulations of Switzerland, Swiss banks will hardly block customer assets let alone strip them in favor of any third parties.
The latest news on the subject that all major mass media published claims that the Swiss Ministry of Justice refused to transfer the assets of Russian customers to Ukraine on the grounds that such transfer would violate the Constitution, legislative regulations, and the laws of Switzerland currently in force.
The conclusion is perfectly clear, Switzerland observes its own laws and sticks to the global transparency principles. This way, neutrality and bank account safety are intact and the country meets all the local and international requirements and regulations.
Swiss banks as a secure storage – who does the concept work for?
Yet, where Swiss security and economic stability issues are concerned, even the existing statutory framework is not enough to stop international regulatory authorities from the clampdown. The issue never concerns law-abiding business people and wealthy foreign HNWIs who choose to keep their money in Swiss banks due to the safety and reliability thereof and not out of habit.
In the light of the present global situation, setting up a bank account abroad is a challenging and in some cases even dangerous task.
Below, persons and entities that enjoy an opportunity to set up a Swiss bank account and have no worries as to the protections their funds enjoy are listed:
NB: if your residence country is a CRS-member jurisdiction, Swiss banks will no doubt report your assets and all the related info to the corresponding tax authorities.
Where can you open a bank account to protect assets if not in Switzerland?
If in search for absolute anonymity, you shouldn’t set up bank accounts in Switzerland, Great Britain, Europe, or offshore jurisdictions. The times when they boasted perfect confidentiality and anonymity are long gone. At present, you can’t hide your name from tax authorities, inspection offices, and regulators therein. In some cases, you may partially succeed with this but the results will be far from the ones planned or desired.
Those with no opportunity to set up a Swiss bank account or those who can’t benefit therefrom, enjoy several other options:
Safety and security of Swiss banks in 2023
Times change, and nothing is like it used to be, including bank secrecy in Switzerland that is no longer as absolute and important as in the past. The Swiss government still makes significant efforts to remain the world’s top financial hub sticking to the country’s legislative and constitutional provisions even when faced with global regulations contradicting them.
Setting up Swiss bank accounts in 2023 for the sake of safety, security, and bank secrecy is a valid reason to open a bank account. These however are not the only draws attracting foreign customers to Swiss banks.
It is for several reasons that the jurisdiction manages to remain a safe and stable place to keep your funds and set up bank accounts:
If in search for the safest bank, be it for you personally, your assets or business, you are welcome to benefit from the Offshore Pro Group services. You will shortly get the best solution exactly matching your goals.
Be sure to message at info@offshore-pro.info or to have your questions answered and issues bothering you resolved efficiently on a case-by-case basis.
