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Very interesting reflexion ! And a very good argument for tax competition, of which I hadn't previously thought.
However, one can ask itself if the "capital" flows mainly to Switzerland because of low taxes, or because of the "secret bancaire"? This is one of the main problems that I have, as far as morality is concerned. If I don't really mind hosting money of French, Germans or our neighbours, I think it's problematic when we support this way tyrannic governments in Africa for instance, who protect their money in our banks. The only argument that I can find for this is "if we don't do, somebody else will..."
The bank secrecy is certainly an important factor, and it is under attack. But Swiss banks are legally obliged to make sure where the money comes from (money laundering) and the client must identify himself. Of course, you don't know what has been sleeping on bank accounts for years. But in my view the probable fact to have money from criminal tyrants is not the main reason that the bank secrecy is criticized by some countries. It is the fact that it helps "eroding their tax base".
Yes, I agree with you. Foremost when you see attacks coming from Outre-manche, while offshore british banks are probably the same if not worse than our banks.
But regarding the Swiss law against money laundering that requires the bank, or insurance for instance, to know his client, I'm not sure that it's working well, because the penalties are very very low.
I am not an expert; but as far as I know, they risk to lose their license. But try to bring a suitcase full of dollars to a private bank in Zurich. I strongly doubt that you will be accepted without any questions. It is also a question of reputation.
I know for sure it was still possible to bring a suitcase full of dollars in Geneva and Lugano Banks in the eighties.
Certainly, but since then, a lot has changed. The banks have for example signed their Code of Due Diligence, which is a typical example of self-regulation. Therein, they oblige themselves to identify every single new customer. I know that people tried to bring their famous suitcase to private banks recently, and that they were not accepted since they were unable to clarify their situation.
The Code of Due Diligence (german: Vereinbarung über die Standesregeln zur Sorgfaltspflicht der Banken, VSB) can be ordered here.
Thanks.
Il love the word "self regulation".
(my father had to carry such suitcases for the Lugano based company that employed him in Ghana; the funds came from Italy. A triangle Italy-Switzerland-Ghana.)
Sur la question des punitions en ce qui concerne le blanchiment, le billet suivant est assez intéressant. Il ne touche pas la commission des banques, mais tout de même, le processus mis en place laisse quelque peu à désirer à mon avis. Sorry for skipping to French, but as the link is in French, I thought it would be more logical to use this language.
Il me semble que le lien indiqué ne soit pas correct. Il mène sur cette page des commenatires.
Commenting by HaloScan
