Private Banks in Switzerland: What Happens When You Bring Your CHF 200?

Imagine walking into a private bank in Switzerland with a modest CHF 200 (approximately $220 USD) in hand. Would you be able to open a secret account, hide your wealth from the authorities, or even build a balanced investment portfolio?

The Reality Check

According to James Nason, an expert on Swiss banking, the answer is no.

“To do this successfully, the banker has to have a certain amount of assets to start with. If you come into a bank with CHF 200, it’s not enough to build a balanced investment portfolio.”

However, if you were to bring CHF 200,000 (approximately $220,000 USD) to the same bank, things would be different.

“The banker has a serious amount with which to build up a balanced investment portfolio for you,” Nason said.

Numbered Accounts: Fact or Fiction?

But what about those infamous numbered accounts, often depicted in films and TV shows? Do they still exist?

“Yes, you can have numbered accounts at Swiss banks. The procedure to open one is exactly the same as an ordinary account. The only thing that’s special is that within the bank, your business is conducted under a number or code, not under your name,” Nason confirmed.

However, Nason warned that these accounts are not foolproof.

“If, for example, criminal proceedings are underway, if a Swiss investigating magistrate comes into the bank wanting information in connection with a crime, a numbered account doesn’t offer you any fancy protection whatsoever.”

Swiss Banking Secrecy: Myth or Reality?

Swiss banking secrecy is often touted as impenetrable, but experts caution that it’s not entirely absolute. While banks respect privacy by default, there are provisions to expose criminals to the law.

“If a bank notices a suspicious transaction or has well-founded suspicions that something like money laundering is going on, the bank is obliged by law to freeze the account and report it to the authorities,” Nason explained.

Recent Developments

In recent years, Switzerland has faced pressure from international authorities to crack down on illicit funds stashed away in its banks. The country has frozen assets belonging to several high-profile figures, including former Haitian dictator Jean-Claude Duvalier and Tunisian ex-president Zine El Abidine Ben Ali.

Conclusion

So, what happens when you bring your CHF 200 to a Swiss private bank? Unfortunately, it’s unlikely to get you very far. But who knows? Maybe you’ll strike it rich and be able to open that numbered account after all…