Wonders of Swiss Banking

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Switzerland's independence and neutrality have been a honoured by the major European powers. Switzerland was not involved in either of the two World Wars.

Its Capital Geneva is the European headquaters of the United Nations. It is also home of International Red Cross. It is considered to be the heaven on earth due to its breaktaking scenic beauty. Its chocolates are famous all over the world. And it has earned a dubious distinction around the world for providing sophisticated and discreet banking services.

SWISS BANKING

There are about 400 banks in Switzerland, ranging from the "Two Big Banks" down to smaller smaller banks. The Two Big Banks Credit Suisse and USBS have extensive branch networks throughout Switzerland and in mnay international centers. Smaller banks are serving the needs of a single community or perhaps few hundred special clients or families.

Banks are licensed by the Swiss Federal Government through its Banking Commission, and are allowed to operate throughout the country. A number of banks also have offices or other repsentation in foreign countries. Among the approximately 400 licensed banks in Switzerland are also the branches of some of major international banks.

PRIVATE BANKS

Private Banks have a very long tradition in Switzerland. They are primarily associated with portfolio management and other wealth management services for private clients.

These services are directly primarily at "high networth individuals", and there are a number of "private banks" who refuse anyaccount less than $ 1 million.

SWISS BANK SECRECY

Banks in most countries are prohibited from divulging information about their clients. However, Swiss law is specially strict on any breech of confidentiality, whether in banking or in other commerce.

In Switzerland, It is a serious offense to divulge any information about a bank customer to a third party, including offcial requests of froeign governments, except in some very special and clearly defined situations.

Swiss bank secrecy is reinforced by a constant awareness of the bank's obligation to maintain confidentiality.

Both the staff members and the banks are liable to be prosecuted if a lapse is discovered. This keeps awareness of banking secrecy high and lapse rare. This culture of absolute discretion and secrecy is integral to the Swiss banks.

NUMBERED ACCOUNTS

Numbered accounts (or pseudonym accounts) are different from normal banks accounts. The usual Swiss acounts records omit refrences to the customer's name or other identifying information, replacing it with a code number or the pseudonym.

Only a few senior managers and their secretaries within the bank know the relationship between the code number and the actual customer. It is important to emphasize that a bank has an obligation to know the true identity of both account holder and its beneficial owner, and that there is no such things as an anonymous account.

But due to the constant awareness and strict enforcement of bank secrecy, there is little known about the real owner of the numebred accounts aoutside the banking inner circle. For all these reasons, one gets to read lots of stories about the legendary Swiss bank accounts.