SWITZERLAND

Consider the benefits of offshore banking in Switzerland, which offers expats and companies international financial services. Offshore banking is as synonymous with Switzerland as skiing, chocolate and watches. However, in recent years the sector has been forced to undergo significant changes. Introduction to offshore banking Essentially, an offshore bank is a bank located outside the account holder’s country of residence, typically in a low tax jurisdiction. Switzerland is the European capital for offshore banking and around one-third of global private wealth is based in the country. Reasons for offshore banking in Switzerland People choose to bank offshore for several reasons. Client confidentiality is one of the foundations of Swiss banking, a feature that is often highly prized by clients. Swiss banking laws ensure that no information can be divulged by Swiss banks to a third party – even a foreign government. To do so would result in criminal charges being brought against the bank and its employees. Notably, tax avoidance and exchange control violations are not criminal activities in Switzerland and therefore would not be grounds to compromise standard confidentiality. Additionally, those living or working abroad may find that holding an international bank account makes it easier for them to manage their finances when they are outside their home country. Individuals based in countries that are less politically or financially stable than Switzerland may be worried about the security of domestically held funds. As a long-standing neutral country, Switzerland has historically avoided much of the turmoil that has affected Europe and the wider world.