Switzerland is known for its impressive banking system, including its legendary privacy policy. While Swiss banks may not be as exciting as those in spy movies and action movies, they are certainly well-run and privately owned. Each bank has its procedures for opening an account. Below we will provide you with some guidelines for opening a Swiss bank account and tell you what information and documents you need to provide.
Choose Your Bank and Business
You need to understand the banking options. According to SwissBanking.org, by the end of 2011, there were 312 banks and 3,382 branches in Switzerland. This means you have a lot of choices.
- The two largest banks in Switzerland are UBS AG (United Bank of Switzerland) and Credit Suisse Group AG. There is also the Leif Eisen Group, which has branches in more than 1,200 places across the country. These banks can provide standard accounts.
- Swiss local banks mainly operate loans and traditional interest-bearing deposits.
- Switzerland is divided into 26 administrative regions (cantons) and has 24 cantonal banks. These banks serve their own states and are subject to state laws.
- There are also 13 private banks in Switzerland. Some of these banks are the oldest banks in Switzerland. They basically do not conduct storage business publicly. Most of them focus on providing private financial services.
Learn about the standard types of accounts. Applying for an account with all banks is the same process (listed in the second part of the article).
- Private Accounts: Standard private accounts are used for payroll storage, payments (such as bill payments), and securities transactions. You can open a private account dedicated to private clients, which means you can handle larger amounts of personal business and enjoy all the services of the bank (such as property management).
- Savings account: Savings accounts are used to save money and earn interest. Generally speaking, savings accounts have very high security.
- Investment account.
Understand the account number. First of all, the account number is not anonymous. The bank must know who you are and get your proof of identity. However, they will provide the highest privacy protection for the account (just like in a thrilling spy movie). With an account, once your account is opened, all your business will be completed under the account or password instead of your name.
- Swissbanking.org states that the account number should not be used for international electronic transfers and remittances. If international electronic transactions are to be conducted, the customer’s name, address, and account number should be known to the bank.
Be aware that anonymous accounts will not exist. According to Swiss law, you must provide the bank with proof of your identity, which cannot be done online, and the bank will want you to open the account in person. However, if you are unable to come in person, you can complete the account opening by contacting the bank.
Open an Account
Find out if you qualify to open an account. Generally, adults aged 18 and above are eligible to open a Swiss bank account. But remember, banks reserve the right to reject customers. You may be rejected by the bank if you meet the following conditions:
- Suppose you are a “politically exposed person”, involved in a scandal, or have a disdainful reputation. Banks may consider whether such a person can become their customer, as he/she is likely to cause damage to the bank’s reputation.
- Banks will suspect that your money came from illegal activities because banks in Switzerland are legally prohibited from accepting money obtained from illegal sources.
Know what information you are providing. Swiss banks are required by law to verify the identity of any potential customer by checking official identification (a passport is recommended). They ask you to provide your name, address, date of birth, occupation, and contact details.
- The proof of identity you provide to the bank must be verified. Your identity must be officially confirmed in your home country, which can be the bank branch where you apply for an account, a correspondent bank, or an institution, such as a company or an official designated by the bank. The bank will give you detailed instructions on how to obtain the identity verification they specifically require.
Understand Swiss banks and the IRS (U.S. only). If you are a U.S. citizen, you will need to sign a document agreeing to the IRS knowing the amount of all your transfers.
- Form 1040, Part III of Schedule B must be completed, clearly stating that you want to open a foreign bank account.
- Form TD F 90-22.1 must be filled out before June 30 of each year. Those with more than 10,000 US dollars must inform the IRS of their foreign “financial account” in advance one year before applying for an account. Specific locations.
Be aware that you cannot open a bank account entirely over the Internet, as Swiss banks must control the identification of all potential customers. Some foreigners (who do not live in Switzerland) open Swiss bank accounts through communication between the parties (e.g. through the postal service).
Be familiar with the questions Swiss banks may ask you. When you start opening your bank account, each Swiss bank will ask different questions. However, they all follow a similar process. When banks require proof of identity, they will also ask questions like:
- Are you depositing money on behalf of others? If the answer is yes, they will ask you to identify the beneficiary (the person for whom you are saving the money).
- Disclose your source of funds. As mentioned before, Swiss banks cannot legally accept illegal property from their clients. If possible, the bank will ask you to provide documentation of the source of the property acquisition. (For example: certificates from foreign banks, house sales contracts, etc.)
- What is the nature of your professional operations?
- What does your overall financial picture look like?
- What does your typical cash business look like?
Swiss banks have minimum deposit limits. Each bank has different minimum deposit amounts when you open a new account. Check the minimum limits of the bank you choose.
Contact the bank of your choice. Each bank has its own steps for opening an account. You should follow these steps to open your own account.
Tips
- If you have liquid assets of more than US$300,000 (1.8 million RMB), you may be willing to invest in a Swiss private bank for a long time because they can provide a wide range of services to large clients.
- For details of banks in Switzerland, please log in to http://www.swconsult.ch/cgi-bin/banklist2.pl.