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Season Three Research Files
Episode Eleven
11:00pm-12:00am
Swiss banks welcome accounts from foreign residents all over the world. The main reason for having a Swiss bank account is to keep one's financial status a secret. The Swiss have some of the tightest regulations in the world regarding who can gain access to your account.
Unlike American law, where law enforcement agencies, the judicial system, and private citizens can gain access to all kinds of financial information, the Swiss laws enforce that neither the bank's officers nor the bank's employees are allowed to reveal any information relative to an account to anyone, including the Swiss government. The Swiss consider tax evasion and many other U.S. crimes as "political offences." Things like divorce, inheritance disputes and bankruptcy cases are considered examples of private matters, and as such the secrecy of the account is protected from any legal action to verify assets or attempts at seizure.
There are three types of activity are exceptions. The Swiss consider organized crime activities, drug trafficking, and insider trading of securities as illegal. They are bound by treaty with the United States to open those kinds of accounts for possible legal proceedings. In instances of this kind, the Swiss authorities have the final say on whether or not to reveal information.
The Swiss currently charge a hefty 35% tax on interest earned in Swiss accounts but Americans get 30% of that tax refunded by showing that they are not Swiss residents. To claim the refund, however, the account holder must identify himself.
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