What is an Offshore Account in Switzerland?

Having an Offshore Account in Switzerland means peace of mind. Your assets will be diversified with the safest banks in the world and managed by asset managers who are producing results you can measure. 30% of all private offshore assets are managed in Switzerland.

“Take your money out of the Euro Zone (or the USA) before the Euro Zone will take your money out of you!”

More than 300 years ago, the first banks in Switzerland were formed. Swiss banks managed the budget of the French Kings for financing the wars in the colonies. The Swiss banking system was created and developed as a safe haven for international investors. The long tradition in banking combined with a very stable political, financial and monetary system in the last 200 years made Switzerland famous. It has gained the reputation of one of the safest places in the worldto store your money with reliable and secretive business partners.

This little European Country in the centre of Europe became the world’s biggest centre for managing offshore wealth. Today, an astonishing percentage of ca. 30% of all global money managed is professionally managed in Switzerland.

Even with the most recent changes regarding the Swiss banking secrecy, national and international laws, regulations and agreements to combat tax evasion and money laundering, the Swiss banking system is more attractive than ever as a safe haven for international asset protection. Year after year, the new money inflow is still constantly growing. The Swiss Banks and the Swiss financial system have just proven their flexibility to adapt fast. The political and financial challenges made the Swiss banking system even more secure. It is the best place on the planet to protect your wealth in a legal and secure way.

 

The Swiss banks are supervised by the Swiss Financial Markets Supervisory Authority, better known as FINMA, (www.finma.ch).

 

Never before in the history of Swiss banking, had such big amounts of new money coming from all over the world entered into Switzerland. This is one of the multiple pieces of evidences that the world is becoming more insecure.

 

Switzerland has AAA credit rating since 1989. There is no other country having comparable ratings. With Banks getting bankrupt and government with rapacious tax authorities confiscating their citizens’ savings in countries like Cyprus, Italy, Lebanon, Venezuela or Argentina is just a matter of time until the next case is going to be in the news of the world’s media.

How can you protect yourself and your family from those scenarios?

For sure, one of the best asset protection opportunities is to have a bank account in Switzerland moving part of your entire wealth there in one of the safest private banks in the world.

  1. Offshore Bank Account – What does it mean?

 An offshore bank account is a bank account located outside of your habitual jurisdiction of residence. Offshore Bank Account means privacy. The word “offshore” indicates that the account is located offshore in a foreign country. The governmental authorities at the place of your permanent residence have no access to your accounts, as their authority stops at their borders.

Only in case of a serious criminal offence your country of residence can start a request for international legal assistance asking the Swiss authorities to disclose your offshore bank account information. Even in case of such a request you have the legal weapons to combat the disclosure of your private account information.

Foreign countries have misused the efficient Swiss legal system to collect information on offshore bank accounts with the intention to steal money, for example, from a business competitor of the government. The Swiss court will analyse very carefully if the request for international legal assistance is justified or just fabricated with false accusations. 

The assets deposited on an Offshore Bank Account are assets preserved for rainy days during lifetime or for the next generation to come. It’s a long term investment with money you should not need to cover ongoing expenses. These assets should be deposited to protect your family.

By only transferring your money to Switzerland and keeping it in Swiss Francs your assets are automatically hedged. When the Euro has been introduced to buy 1 Euro you had to pay 1,73 CHF. Today, you need 1,05 CHF only for buying one euro. The EUR has devaluated 40% since the introduction of the euro.

“We lost the savings of 3 hard-working generations”

When I was leading the legal department of a Swiss bank 20 years ago, some clients form Argentina with Italian roots visited me in the bank in Zurich. They told me: “This money on our Swiss Offshore Bank Account represents everything we have. We lost our entire wealth in Argentina during the crisis in Argentina. We lost the savings of 3 hard-working generations. We are so happy having an Offshore Bank Account in Switzerland opened by my grandfather many years ago.”

This story shows exactly what it means having an offshore bank account.

  1. Swiss bank with core business private wealth management

 

Most foreign clients opening an offshore bank account in Switzerland want to place their wealth with UBS or Credit Suisse and a few other big brands. In Switzerland, we have more than 250 banks. Only 115 of the Swiss banks are offering private banking services. Not all of the 115 Swiss banks are offering private wealth management to foreigners.

 

We will introduce you to a prime Swiss bank.”

 

The increased compliance and anti-money laundering requirements imposed by the regulators to the Swiss banks scared small Swiss banks from accepting non-resident clients.

 

Depending on your country of permanent residence, we will propose you a Swiss bank which is tailor-made to your needs and expectations.

 

Our core business is consisting of advising foreign clients choosing the best Swiss bank. Normally, we do not prefer the biggest and the smallest banks. We prefer a mid-sized Swiss bank.

 

We prefer to suggest a Swiss bank that is:

 

  • not involved with risky derivatives
  • not involved in investment banking activities
  • not offering risky credit lines to risky companies
  • and not issuing structured products
  • Tier One Capital Ration exceeding 20% (=strong capital-basis)

 

Structured products are not transparent because of their hidden fee-structure. We prefer a Swiss bank having wealth management as a core business. That’s it.

 

“Do not go alone to the Swiss bank.“

 

Most probably, the bank will offer you over-priced fees. You are not familiar with the industry standards in the Swiss private banking industry. The Swiss private baking business is a non-transparent business.

 

We work with independent Swiss asset managers. They have a substantial volume of assets already deposited with a specific bank. Therefore,the asset managers have agreed institutional pricing. By engaging an external asset manager you will take advantage of such institutional pricing. In general, our clients will pay ca. 50% less, if they come with us to the bank.

 

For our clients, we negotiate all-inclusive fees per year depending on the volume of assets under management. As a general rule, you should not pay more than 1,2% per year of your assets under management.

 

Acting as your asset protector, we monitor the Swiss bank and the external asset manager. We will report you on a quarterly basis. In case the capital basis of a Swiss bank will not be strong enough and in compliance with our standards, we will suggest you change the Swiss bank with a better capitalized Swiss bank