About Swiss Bank Accounts

When a Swiss bank account is mentioned in a movie or novel, it is generally associated with very wealthy, covert spy operations or international criminals. In truth, you don't need billions of dollars in order to take advantage of the benefits offered by a Swiss bank account. A Swiss bank account offers a private, relatively safe spot for depositing money with fairly easy access.

History

Switzerland's history for banking secrecy dates back to the 1700's when the council of Geneva set up rules preventing bankers from sharing their clients' private banking information with others. However, it wasn't until the banking act of 1934 was passed that it became a criminal offense for bankers to share such information. This was in response to the growing unrest in Europe in the years leading up to World War II and pressure from neighboring governments for Switzerland to require its banks to part with information about clients. The question was put before the people of Switzerland in 1984, and they voted overwhelmingly to retain bank privacy laws.

Banks

Today there are more than 400 banking institutions doing business in Switzerland, offering clients a variety of banks from which to choose in order to best match their needs. Many of the most recognizable names in banking operate in Switzerland, so those thinking about a Swiss bank account can choose a bank whose reputation they know. These banks include Barclays, Merrill Lynch and Citibank, to name just a few. The two biggest banks, however, are Credit Suisse and UBS AG.

Privacy

Swiss banks are prized for the privacy they afford their clients. Swiss bankers are legally forbidden from revealing any information about a client's account and face fines and jail time if they should brake that law, provided the client himself is not involved in illegal activity, such as drug trafficking.

Stability

Another benefit that Switzerland offers its client is a stable environment. Not only does Switzerland enjoy a relatively stable economy, but a stable government and good infrastructure. In addition, the country is known for its neutrality during conflicts between countries and has not waged war in hundreds of years.

Geography

Switzerland is located in Western Europe and borders the countries of Germany, France, Austria, Italy and Liechtenstein, however it is not a member of the European Union.

Considerations

Many of those who choose to put their funds into Swiss bank accounts live in countries with volatile governments and are seeking a safer, more secure place for their money. Many are attempting to hide money, perhaps from greedy relatives.