SWISS BANKING AND INDIA

Agenda
Swiss bank accounts are used by :-

Government officials
Millionaire
Criminals to hide ill-gotten wealth.
Middle class people.
People staying in countries with unstable govt.
Swiss law forbids bankers to disclose the existence of your
account without your consent.

In Switzerland, if a banker divulges information about a bank

account without permission, immediate prosecution is begun
by the Swiss public attorney.

Bankers face up to six months in prison and a fine of up to

50,000 Swiss francs.
Why swiss banks are counted as safest banks
in the world ?
1. Switzerland has had an extremely stable economy and
infrastructure for many years.

2. Swiss bankers are also highly trained in investing and know how
to grow your money.

3. Swiss franc is considered one of the world's premier currencies

with virtually zero inflation and has been historically backed
by at least 40 percent gold reserves.

4. Swiss banks are also known to have very sophisticated

investment services and Internet banking.
Some Facts about Switzerland
Switzerland has four official languages that reflect neighboring cultures
67% - german dialects
19% - french
8% - italian
1% - romanisch

Switzerland places its safety and security above all other considerations.

Switzerland is not a member of the United Nations or NATO, nor a

member of the European Union
The rights of the individual Swiss citizens are protected by three
political safeguards

A Weak Chief Executive

The Referendum

The Initiative
Swiss Banks
Two largest banks of switzerland are Union Bank of Switzerland and
Credit Suisse Group which together account for over 50 percent of
the balance sheet total of all banks in Switzerland.

Raiffeisen Group

Regional and local

Cantonal
 
Swiss Bank Accounts and the Law
The Swiss banker's requirement of client confidentiality is found in
Article 47 of the Federal Law on Banks and Savings Banks, which came
into effect on November 8, 1934.

Exceptions

In following cases there is a duty for bankers to provide information

regarding bank account.

Civil proceedings (such as inheritance or divorce)

Debt recovery and bankruptcies
Criminal proceedings (money laundering, association with a criminal
organization, theft, tax fraud, blackmail, etc.)
International mutual legal assistance proceedings (explained below)
International mutual legal assistance proceedings (explained
below) : the Swiss Federal Banking Commission (SFBC) may
communicate information only to the supervisory authorities in
foreign countries subject to three statutory conditions:
1. The information given can't be used for anything other than the
direct supervision of the banks or financial intermediaries who are
officially authorized and can't be passed on to tax authorities.
2. The requesting foreign authority must itself be bound by official
or professional confidentiality and be the intended recipient of the
information.
3. The requesting authority may not give information to other
authorities or to other public supervisory bodies without the prior
agreement of the SFBC or without the general authorization of an
international treaty. Information can't be given to criminal
authorities in foreign countries if there are no arrangements
regarding mutual legal assistance in criminal matters between the
states involved.
 History of Swiss Banking

•code of secrecy is over 300 years old

•The first Swiss banking clients were the kings of France

•The Great Council of Geneva, in 1713, established regulations

•Bank secrecy was regulated only by civil law at that time.

 Switzerland's Banking Act of 1934

Divulging Client Information become Criminal Offence

Two Main Reasons

•Nazi Spies

•French Scandal with Basler Handelsbank

 After World War II

•Jews Dormant Money

•In 1984, the people of Switzerland once again voted in
favor of maintaining bank secrecy by a whopping 73
percent.
Money in Swiss Banks
Country Amount

India $1891 billion

Russia $610 billion

China $213 billion

UK $210 billion

Ukraine $140 billion

Money Laundering
Money-laundering Methods
Black Market Currency Exchange
Structuring deposits
Overseas banks
Underground/alternative banking
Shell companies
Investing in legitimate businesses
Hawala
Effect on India
Tax evasion
Terrorism Activities
Drug trafficking
Counterfeiting of Indian currency
Transnational organized crime
Human trafficking
Corruption
Preventive Measures
Governments Efforts
Prevention of Money-Laundering Act, 2002 came into
effect on 1 July 2005
Proposed Indo-Swiss tax treaty
Memberships
Financial Action Task Force (FATF)
Asia Pacific Group (APG)
Egmont Group of Financial Intelligence Units
THANK YOU