#switzerland is one of the favorite places when it comes to banking and investments because this country offers one of the most secured and confidential banking services to its clients. Because of the bank secrecy law passed in 1934, revealing any #information about client’s accounts and identity has become a criminal offense and may lead to imprisonment for the involved bank employees. The bank may even be penalized for the violation. However, because of the bank secrecy law, some people have used this law to protect illegal funds and investments and became a good tool for #tax evasion.
Switzerland has become a banking haven for the richest people around the world not only for the strict banking policies that protect investors but also for the great tax holidays. However, this shield may start to crumble especially for the richest investors and corporations because of the indictment filed by the US to the country’s oldest bank for shielding clients from taxes due to the “irrational” bank secrecy policies. Other major #countries like the United Kingdom, Germany and India also supported the campaign causing great issues to the country’s banking industry and competitiveness.
A lot of major clients are now thinking that Switzerland’s banking industry and its competitiveness are starting to crumble. Major Banks in Switzerland are now compelled to provide the accounts or names of their American clients. More banks are now providing information to the US while other banks were already indicted and are fined to pay millions of dollars for aiding tax evasions.
A spend tax (instead of wealth tax) for the rich is currently being voted on by the Swiss
This has greatly affected the confidence of clients to Switzerland’s banking industry. For years, Swiss banks have become a haven especially for the richest people in the world. The term Swiss account is considered prestigious, the most private, and sometimes, a status symbol for the rich. With the bank secrecy starting to erode, Swiss banking also started to lose its edge affecting also other tax havens in the world.