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Why Swiss bank is famous for Black Money?

           When any fraud happens we often hear the name 'Swiss Bank' in the fraud. Beside this government occasionally promises citizens to bring back money from swiss bank. So here it is discussed that why does rich people and fraudsters deposit their money in swiss bank? And what is swiss bank's special facility that other banks don't provide?


Swiss bank is famous for black money?

             According to switzerland banking law any bank official can not disclose any account holder's details. Bank official can reveal the account holder's details when swiss court gives them permission. And swiss court usually gives permissions when account holder is blamed criminal charges like money laundering, fraud etc. So it can be told that all the accounts that are active in swiss bank are the secretive accounts. When one wants to open account in swiss bank they have to do kyc process and documentation like as normal bank. But in swiss bank's accounts you do not find account holder's name and address. And the account that you open is also made in code digit. 

 

            In bank's statements and records account holder's name and adress was not also mentioned. For this all the informations about the account holder remain secret. And because of these reasons many people open their account in swiss bank. Many governments of different countries oppose this method of swiss bank and told them to stop this. But swiss bank is not ready to agree. UBS and Credit Suisse are the two big and main swiss bank where most of the accounts are opened. But there are more than 400 swiss banks in switzerland. 50% of accounts that are opened in swiss bank every year are opened in UBS. And for this ubs have the deposit of more than 2.5 trillion dollar. It means people deposited more than 2.5 trillion dollar in swiss bank. And the amount is about equal to indian gdp. Then you can easily assume that how much money swiss bank have?


Why Swiss bank is famous for Black Money?         If the liquidity of swiss banks is told then swiss banks are considered very liquid because most of swiss banks don't involve in commercial loans. For this they have low risk of liquidity crunch. As for example we recently saw that pmc bank gave huge loan for commercial purpose. And when the loan got default to repay the loan the bank had no money. And its direct effects fell on its depositors who deposited their money in pmc bank. As the swiss bank don't give more commercial loans so they have less chance liquid crunch. For this it is considered as a safe bank.

           Beside this it have other advantages. The currency of switzerland, swiss franc is also very stable because swiss government tries to stay neutral in worldwide political programmes. And its government and financial system are also very stable. When one deposits their money in swiss bank they(swiss banks) don't pay interest on the deposit. Rather than account holders pay fees to the swiss banks. As for example UBS charges 0.6% fees to its account holders. Generally the minimum deposit of swiss banks is 50,000 dollars. 


            Many people open account in swiss banks to hide their black money. Generally they pick a person who give them swiss franc and then they deposit the swiss franc in swiss bank. Sometimes many people forms companies in those islands where taxes are less and then they open account in swiss bank in the name of company so that their name and black money are stayed very secret. Huge money of india is also deposited in swiss banks. It is quite impossible to get back the black money from swiss bank for the swiss government law mentioned above.


          If you have any query related to swiss bank please comment below so that the topic can be covered.


Best wishes to invest.



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