The Swiss Banking Secrecy

The Swiss law obligates the Swiss bankers to keep all information about their clients strictly confidential.Throughout the banking industry in Switzerland, Swiss Banking Secrecylaws are rigorously implemented for all clients. It is particularly evident in civil matters. Naturally, Swiss Banking Secrecy does not protect those clients who have committed criminal offenses (like drug trafficking) under the Swiss Law. Swiss Banking Secrecy rules are clearly defined and protected by the Swiss Constitution. If any information is revealed by a Swiss banker about his clients, he will be prosecuted under the Swiss Law. Anyone breaking such rules is subjected to pay substantial fine and sometimes even face imprisonment. Swiss law is especially strict on any breach of confidentiality, whether in banking or in other commerce.The banking act adds a special section (introduced in 1934, in order to protect accounts of Germans, especially German Jews, from Nazi confiscation) which makes it a criminal offense, with the possibility of an individual going to jail, for the bank or its employee or agent to improperly divulge any confidential information. These portions of the banking law have been interpreted, both in practice and by the courts, to make it a serious offense to divulge any information about a bank customer to any third party, including official requests of foreign governments, unless very specific criteria have been met. This is the main reason why many people around the world choose Swiss Banking for their asset protection and estate planning issues. It is because of such rules that clients feel their assets are secured.

Swiss banks do not make exceptions to the financial privacy rules even in the case of Divorces, Inheritance and Estate Planning. Hence, it protects the clients’ assets from intrusive and greedy lawyers looking for easy money. It is an unfortunate matter that usually some of the supposed experts accumulate such huge wealth in the name of legal fees that nominated legal recipients lose their rightful benefits. But this is not the case in Switzerland. Anyone who is not a Swiss bank client or authorized by the person concerned will try in vain to gather private financial information in these banks, whether they are attorneys, foreign authorities or third party concerns. For added privacy, one might want to opt for a numbered account which guarantees the highest degree of confidentiality. It works in your favour to use offshore corporations and trusts in jurisdictions such as the Principality of Liechtenstein, the Cook Islands and Panama.

Most of the Swiss banks are supported by very big companies as they have major share holdings that ensure the trust and faith in the bank. Although this practice of absolute discretion is crucial to the Swiss banks, the branch offices outside of Switzerland must work according to the laws of the countries in which they are located and they might not have such strict information protection laws. It is a popular myth that Swiss account is a means of concealing criminal activity. In fact, Swiss legal authorities cooperate with the foreign counterparts in such delicate matters.