How to Open a Swiss Bank Account

For many, the thought of a Swiss bank account conjures images of organized crime, smuggling, and embezzling. These images are clearly influenced by the media, but the underlying principle is based in fact. In movies, people utilize Swiss bank accounts because they are virtually untraceable. While law dictates that this is clearly not the case in instances of smuggling and organized crime, the Swiss banking system takes great pride in the amount of privacy given to customers with private accounts, leading many to wonder exactly how to open a Swiss bank account of their own.

Because Switzerland is a sovereign nation that has maintained neutrality throughout major wars, they have enjoyed a stable economy that has truly allowed their banking sector to flourish. Over 1/3 of global funds that are held offshore, or outside their country of origin, are held in Swiss bank accounts. The banking and financial industry accounts for over five and a half percent of the Swiss work force and in 2007 there were over five and a half trillion dollars worth of offshore funds in Swiss accounts.

If you wonder how to open a Swiss bank account, it involves a bit of red tape. For United States residents looking to open an account, a legal document must first be signed asserting that the account holder has no outstanding financial obligations to the Internal Revenue Service. The reason for this is that Switzerland has policies regarding taxes that are heavily criticized by the United States government. While Switzerland will provide information regarding individuals who are committing tax fraud, their policies to not force them to reveal information about people practicing tax evasion, which is not considered a crime in Switzerland. As of March 2009, however, the Swiss banking industry has agreed to cooperate more fully with foreign governments regarding tax evasion.

While signing the IRS document is the essential part of how to a Swiss bank account, particularly those with branches in the United States, it is a bit harder to open a private account. These accounts are also called numbered accounts, because clients are referred to almost solely by their account numbers. Only senior banking officials know the names of the account holders and are prohibited from talking about account holders. Account holder information can, however, be given out in the event of a criminal investigation. It is important to know that while it is possible to file for these accounts through the mail or electronic means, it will involve lawyers, letters from a U.S. Banker, and a signature from a Swiss consulate.

Laws regarding how to open a Swiss bank account have undergone significant changes in recent years. Despite this, however, they are still a preferred method of banking for many people due to the amount of privacy that is given to accounts and account holders as well as the security of Swiss banking. This is not a new phenomenon and has no roots in crime or anything Hollywood has portrayed. In fact, the reason Swiss bank accounts are so well protected is that is has been the policy since the Middle Ages. These privacy laws have been in place for centuries, with the Swiss managing the finances of many of the leaders of France throughout history. These privacy laws were first put to paper code in 1934, but have been in place for much longer.

There is one reason that surpasses privacy; however as the leading reason people want to know how to open a Swiss bank account. For many people, the decision has nothing to do with secrecy and everything to do with stability. Switzerland has been many years without a major upheaval or conflict. This stability has allowed the banking sector to grow steadily and has created a reliable and secure financial market. For this reason, people whose governments are in an economic upheaval or who are facing economic woes look to the stability of the Swiss banking sector as a safe place to save and invest their money.

The confidence people place in the Swiss banking system is well earned. The Swiss have spent centuries creating a stable economy and a thriving banking and financial system. Their neutrality has spared them trillions of dollars of expenditures in wartime costs and has allowed the finance industry to remain stable for many years. It is with this in mind that many people look to the Swiss as the premier banking choice, despite the fact that there are many stable nations that provide similar secure investment opportunities.

In short, opening a Swiss bank account involves a bit of time and a bit of red tape but is generally a stable financial decision. Barring any reason for the government to need to access your account, these accounts are remarkably private and funds are stable and secure. Many investors find these accounts to be a secure way to manage funds and investments, particularly during times of economic hardship at home. These accounts may not be all of the things the legends make them out to be, but knowing how to open a Swiss bank account means having a secure and stable way to save your money in any economic climate.