Swiss Bank Account Privacy Laws
Swiss Bank Accounts
There are a number of reasons why Swiss bank
accounts are among the most highly regarded
accounts in the world.
1. The “Federal Constitution
of the Swiss Confederation” and the “Swiss
Banking Act” guarantee the right to privacy,
including, but not limited to Swiss bank account
privacy.
The following is an article directly out of
the Swiss Constitution.
“Article 13 Right to Privacy
“1 All persons have the right to receive
respect for their private and family life, home,
and secrecy of the mails and telecommunications.
“2 All persons have the right to be protected
against the abuse of personal data.”
The Swiss Banking Act provides for criminal
punishment against anyone who reveals private
information about a Swiss bank account or anyone
who induces others to violate the privacy of
a Swiss bank account.
Article 47 of the Swiss Banking Act provides
for criminal sanctions (imprisonment for no
longer than six months or a fine of not more
than 50,000 Swiss francs - nearly $40,000 US)
against anyone who divulges confidential information
entrusted to him or of which he has become aware
in his capacity as an officer or employee of
a bank, and against anyone who tries to induce
others to violate professional confidentiality.
Article 47, therefore, was enacted in order
to attract wealth and as a means of protecting
people in need of financial protection.
Swiss Bank account client privacy has many
legal foundations in Switzerland. Privacy laws
for Swiss bank accounts are specifically written
in the Swiss Civil Code. The banker is specifically
obligated under the contractual obligation to
protect and guarantee the confidentiality of
the client’s Swiss bank account.
Article 47 (Art. 47) of the Swiss Banking
Act, Paragraph 1 reads as follows:
“Whoever divulges a secret entrusted to
him or of which he has become aware in his capacity
as officer, employee, mandatory, liquidator
or commissioner of a bank, as representative
of the Banking Commission, officer or employee
of a recognized auditing company and whoever
tries to induce others to violate professional
secrecy, shall be punished by imprisonment for
not more than six months or by a fine of not
more than SFr. 50,000” (nearly $40,000
USD).
Naturally, as in any responsible, reputable
and highly respected banking center such as
Switzerland, the privacy laws are not meant
to be open doors for criminal activity. Terrorists,
drug dealers, money launderers and inside traders
beware. A Swiss bank account is not a haven
for the criminal.
With virtual all serious crimes a Swiss judge
can order the privacy rights to be curtailed
when criminal proceedings are underway. So,
the goal is to protect honest, law-abiding bank
clients; whereas, criminals will be exposed
to the full extent of the law. In the rare event
when this transpires, the case is brought before
a Swiss judge. If the violation in the foreign
country is also a crime in Switzerland and the
judge so rules, then, and only then, can the
Swiss bank account information be revealed.
Later, if one is interested in the minute details,
one can read in-depth information in English
by going to the Swiss Justice and Police Ministry’s
website at www.ofj.admin.ch. Here, one will
later find a ‘Checklist for Foreign Requests
for Mutual Assistance in Criminal Matters.’
The latter portion of Article 47 of the Banking
Act, as one can see in Paragraph 4, it states:
"Federal and Cantonal regulations concerning
the obligation to testify and to furnish information
to a government authority shall apply."
This section refers to rare instances when Swiss
bank accounts are utilized for illicit purposes
or used to store criminal proceeds.
Banking has long been a business principled
on trust and confidentiality. Historically,
the banker did not scream the details of the
bank’s clients in the public square. Confidential
treatment of banking client information has
been in existence from the beginning of banking
history. However it was not originally in the
form of written laws. For people with Swiss
bank accounts, however, privacy and confidentiality
has long been written in specified legal code
and protected under civil and criminal law.
The Swiss Banking Act was enacted in 1934 and
now, as then, contains articles such that any
violation of bank-client privacy is a criminal
offence.
2. Economic freedom is guaranteed
The Federal Constitution of the Swiss Confederation
also guarantees economic freedom. Read the following
which is directly from the Swiss constitution.
“Article 27 Economic Freedom
“1 Economic freedom is guaranteed.
“2 It contains particularly the freedom
to choose one’s profession, and to enjoy
free access to and free exercise of private
economic activity.”
3. The financial industry, including
Swiss Banks, are protected and the safety is
regulated by the Swiss Confederation.
Read the following which is directly from the
Swiss constitution.
“Article 98 Banking and Insurance
"1 The Confederation shall legislate on
banking and stock exchanges; it shall take into
account the specific task and position of the
cantonal banks.
"2 It may legislate on financial services
in other fields.
"3 It shall legislate on private insurance.”
4. Economic safety principles are written
into the Swiss constitution
“Section 7: Economy
“Article 94 Principles of Economic Order
“1 The Confederation and the Cantons shall
respect the principle of economic freedom.
“2 They shall safeguard the interests
of the national economy and, together with the
private sector of the economy, contribute to
the welfare and economic security of the population.
“3 Within the limits of their powers,
they shall strive to create favorable conditions
for the private sector of the economy.
“4 Derogations from the principle of economic
freedom, in particular measures against competition,
shall be allowed only if foreseen by the Federal
Constitution or based on cantonal monopolies.”
So, Swiss banks are among the most highly regarded
banks worldwide due to the safety and privacy
that is embedded in the Swiss Constitution,
various legal acts and the enforcement of constitutional
economic safety principles in the Swiss banking
industry.
To open a Swiss bank account, call
Companies Incorporated at 1-800-830-1055 or
internationally at +1-661+-253-3303. To
apply online, please click
here. To order an offshore company plus
account, please click
here.
