Swiss bank secrecy is about to fall(Swiss bank,Secret,secrecy)

March 4, UBS Global Wealth Management Group, Richard Branson, Chief Financial Officer Department (second from left) accepted the U.S. Senate tax evasion investigation team of the American questions. Hearing, he refused to put tens of thousands of America's list of clients available to the United States Government

Switzerland's largest bank UBS credit crisis losses

Once the Security Act can not be maintained, there will be substantial capital flight situation, the country's economic situation worsened

At this meeting the leaders of the Group of 20 summit on London, and Switzerland some referred to as "tax havens" countries are under very great pressures, some countries have already begun loosening of bank secrecy laws. Formulate the West the first Swiss bank secrecy laws, its secrets may be lost soon.

The so-called Swiss bank, in fact, collectively, the Swiss bank. Among them, UBS, Zurich, Credit Suisse First Boston is the most representative. Swiss bank kept the world's 1 / 4 of personal wealth, the staff here to have the luck to come into contact with the countries politicians, business tycoons and entertainers star. The reason is that the Swiss banking system is strictly confidential.

"Bank Secrecy Act" stipulates that Swiss banks are to implement a password system, treated in the strictest confidence for depositors. Secret bank deposit-taking business is limited to the 2-3 senior staff member to intervene in the prohibition of other staff involved. For those who leak secrets deposits are also very severe punishment, imprisonment for 6 months and a fine of 2 million Swiss francs, or a heavier punishment. The Act also provides that any foreigners and foreign governments, including Switzerland, Heads of State and Government as well as the courts, have the right to interfere, to investigate and deal with any individual bank deposits in Switzerland, unless there is evidence that the deposits people have criminal

In other words, when you enter the bank from that moment, you and the bank are all you conduct a secret, even if you did not open an account. If you cancel the account in here, all the information you are still a mystery. Swiss banks have a high degree of staff confidentiality, their agents almost. The United States, "Newsweek" has been reported in 2006 a Swiss bank documents, bank reminded its staff to live in the guesthouse on the desktop in order to maintain without leaving any traces, immigration and customers are not permitted to bring any relevant documents. At the same time, they also warned that, even if found by the U.S. Federal Bureau of Investigation, but also want to do first of all, the protection of bank secrecy.

Once to open anonymous accounts

However, some mysterious Swiss bank client confidentiality is still not satisfied with the job, they want more interaction with the Security Bank more, the Swiss bank deposits also occurred in the state of anonymity. However, in 1987, the anonymous account disappeared.

Even if re-sensitive customers, the Swiss bank has also asked the staff members to "know your customer", that is, each account must be confirmed guests on the identity and legitimacy of the economy. Money in order to put an end to become the world's memory, the Swiss banks have their own strict, internationally recognized identification regulations. Even if you are a head of state, your name should not be empty, can be used instead of numbers. Of course, these elements only a small minority of banks within the person know that bank account numbers and other customer account to use the same system of bank secrecy.

Of course, if the depositors involved in drug smuggling and trafficking in weapons and other serious crimes, Swiss banks will open the gate to the law. If necessary because the estate or divorce proceedings, still for depositors Security Security Act. The plaintiff must produce evidence of the existence of accounts, only that the evidence, the court can not use some of the data bank, but still want to maximize the protection of the confidentiality of depositors.

In the case of tax fraud, the court system can get rid of bank secrecy, and can meet the request of foreign governments to provide legal assistance. However, if tax evasion simply not to provide legal assistance, because of the tax system in Switzerland based on the principle of self-declaration.

Encourage all types of crime problem

A long time, the Swiss bank secrecy system has been controversial. For example, Swiss banks had to accept Nazi Germany gold transactions. "World War II," After the strong demand in Germany the majority of the injured State to return looted treasures, including the safe storage of a large number of Swiss banks in the wealth. Under pressure, Swiss banks had to open the contents of their own assets. This is also the Swiss bank since its inception was forced to first publish the content assets. At the same time, Swiss banks refuse the return of the post-war persecution of the Jews deposits, some of the families of the dead, or even hostile to the Swiss bank deep.

This loss of moral criticism, but also the Swiss bank has absorbed the former Argentine President Carlos Menem and former Iraqi President Saddam origins, such as money, as well as in "9.11" incident, many found in Swiss banks terrorist suspects to open accounts.

According to statistics, seven trillion U.S. dollars all over the world is now off-shore wealth has 1 / 3 deposited in Swiss banks. Swiss financial services sector of the national gross domestic product (GDP) contribution rate is 12.5%. Property will inevitably cause the rich to hide tax evasion situation, the Swiss banks were accused of "tax havens" one.

In 2000, Switzerland has made a public opinion poll, 1 / 3 of people think the system of bank secrecy in Switzerland only to provide the benefits of the rich and unscrupulous merchants, 10% of people want to completely abolish the system. They believe that tax evasion is not a simple financial question, but a serious crime.

Secret can not be maintained positions

Financial crisis, Swiss banks to allow the rich to evade tax shelter a matter of more open. The United States and Europe in order to ensure tax revenues, the start to the Swiss bank secrecy laws to put pressure. UBS in the United States to assist the United States tax the rich on the grounds, put the biggest Swiss bank to court. UBS not only paid a huge fine, but also for the first time in more than 250 client list. Subsequently, France, Germany and Switzerland, threatened to put the OECD's "blacklist", the request to the Swiss banks to provide more information.

At all these pressures, the Swiss federal government on March 13 announced in 2005 to accept the OECD's tax treaty article 26, the expansion of the tax department and foreign exchange bank information. Swiss banks and the loosening of the concession to allow people to see the secret is about to fall embarrassment.

It is reported that the U.S. government because of fear of being prosecuted for tax evasion, Swiss banks have already mentioned a number of large customers go a great deal of money. Swiss Bank's recent announcement revealed that only the fourth quarter of 2008, customers of the bank capital from 85.8 billion Swiss francs, the whole in 2008, customers from its "global wealth management business" took a total of 100.5 billion U.S. dollars, which is equivalent to being 8% of assets under management. Also have the stock and bond investment losses. Last year, the Swiss banking sector has lost nearly 1 / 4 deposit.

Relevant experts believe that as soon as the Swiss bank secrecy laws can not be maintained, there will be a lot of money to keep the situation in other countries, the banking sector to Switzerland's contribution to GDP ratio will drop to 6% ~ 7%. At that time, Switzerland's economic situation will be worsened.

"Tax havens" The law is very loose

The traditional "tax havens" refers to many of Switzerland, Liechtenstein, Luxembourg, Bermuda, the Bahamas and the British Virgin Islands and other 43 countries or regions, of which there is located in Europe, Switzerland, Austria, Liechtenstein, Luxembourg, Andorra, Monaco and other countries. 50% of global capital has been the "tax havens" transit. Among them, the Virgin Islands is freely all over the world for all companies registered in tax havens, the minimum, the minimum supervision. Where the establishment of the registered capital of 50,000 U.S. dollars at the following companies, the minimum registration fee is only 300 U.S. dollars, plus the license fee, processing fee, the local government collected a total of 980 U.S. dollars, after paying 600 U.S. dollars a year as long as the business license can renew .

At the world's financial institutions and the process of cooperation, Monaco, Liechtenstein and Andorra is known as uncooperative tax havens because they are at the slow progress in the exchange of information. In "tax havens" countries, the European financial institutions Jersey favorite selection of the British Islands, is because the legal system here is relatively relaxed, here for the 225 banks and 820 investment funds provided by the asylum. Bermuda is considered to deal with insurance and reinsurance business, one of the best areas is the family business, one of the best management of sites. Panama in Central America has hundreds of thousands of banks and registered companies to quickly register here because the company, replacing the business owners for their actions not in conformity with international law concerns.