What is wrong with Swiss Bank Accounts, and how are those misused by people?

Most of us have a twisted view of what Swiss Bank accounts are and what really it means to have the prestigious Swiss bank account. Let’s have a look and see how they started, who can have an account and unlock the mystery.

Swiss bank accounts aren’t just for millionaires, criminals or government officials trying to hide ill-gotten wealth, or celebrities protecting their assets from former spouses. They’re available to anyone and lots of average people have Swiss bank accounts. People who live in countries with unstable governments and banks in particular often turn to Swiss banks because of their security and privacy.

Things that are wrong with Swiss Bank accounts:-

1. Swiss banks only service the filthy rich:-
   Nothing is further than the truth. The majority of a Swiss bank’s clients are not major manufacturers, movie stars or heirs of businesses, but everyday people like you and me. 
2. No interest on money invested:-
   Absolutely wrong! Just like any other bank, Swiss banks also have a variety of investment options such as mutual funds, stocks, bonds, commodity and derivatives investments etc.
3. Swiss banks are financial havens for criminals:-
   Nothing can beat this rumour. However, for people who are unaware, Swiss bank accounts have very stringent policies on who invests money in the bank.
4. Swiss bank accounts are very expensive to maintain:-
   This is not true. Most of the Swiss bank accounts don’t charge a cent in annual fees.

Swiss Bank Accounts are misused by people in many ways:-

For avoiding Tax:-
Here is how the money that is deposited in Swiss Bank accounts are not taxed –

-People Create A (Secret) Identity

-They open a Swiss Bank Account

-They move the money in Swiss Bank Accounts

-Then they invest the Money.

-Then after they start spending the money.

Tax evasion wasn’t the only reason to hold a Swiss bank account. There are so many reasons to hold money out of the home country. First, there’s the tax treatment. In many countries, you can earn money tax-free. How would you like to put your money to work in another country, earn some fat capital gains and pay zero taxes to that country? That’s technically possible when you move your money offshore.

The another misuse of having a Swiss Bank Account is for hiding Black Money.
Black money is money which is earned through any illegal activity controlled by country regulations. Black money proceeds are usually received in cash from underground economic activity and, as such, is not taxed. Recipients of black money must hide it, so these recipients use Swiss Bank Accounts to hide black money.

Source: Wikipedia and other information portals, also Swiss bank website.
Image Source: YouTube

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