Swiss Banking Benefits

Banque Louis’ location

This beautiful building, first constructed in 1906 and completely renovated in 2001 is located in the prestigious Riesbach district in the city of Zurich with superb views of the lake from the roof terrace. This quiet suburb is home to many of the private family banks and offers clients a discrete environment in which to conduct their financial affairs.

The Benefits of banking in Switzerland

Swiss neutrality

Switzerland is an economically advanced and prosperous nation, with a GDP higher than that of some larger western European nations. In addition, the value of the Swiss franc has been relatively stable compared to that of other currencies. In 2003, the financial sector comprised an estimated 14% of Switzerland's GDP and employed approximately 180,000 people (110,000 of whom work in the banking sector). Swiss neutrality and national sovereignty, long recognized by foreign nations, have fostered a stable environment in which the banking sector has been able to develop and thrive. Even though it is near Europe's geographical centre, Switzerland maintained neutrality through both World Wars; is not a member of the European Union or the European Economic Area; and was not even a member of the United Nations until 2002. Currently, an estimated one-third of all funds held outside their country of origin (sometimes called "offshore" funds) are kept in Switzerland. In 2001 Swiss banks managed US$ 2.6 trillion. The Bank of International Settlements (“BIS”), an organization that facilitates co-operation among the world's central banks, is headquartered in the city of Basel.

Law and Regulation

FINMA (Swiss Financial Market Supervisory Authority), an independent agency of the Swiss government within the Federal Department of Finance, supervises most banking-related activities as well as securities markets and investment funds. Regulatory authority is derived from several statutes. The office of the Swiss Banking Ombudsman, founded in 1993, is sponsored by the Swiss Banking Ombudsman Foundation, which was established by the Swiss Bankers Association. The Ombudsman's services, which are offered free of charge, include mediation and assistance to persons searching for dormant assets. The Ombudsman handles about 1,500 complaints raised against banks yearly.

Statutes: Banking Law of 1934

The Swiss Parliament passed the Banking Law of 1934, which codified the rules of secrecy and criminalises violation of it. The secrecy provisions were not included in the first draft of the law, which mainly concerned administrative matters such as bank supervision.

Banking Privacy

Swiss bank secrecy protects private banking information. The protections afforded under Swiss law are similar to confidentiality protections between doctors and patients or lawyers and their clients. The Swiss government views the right to privacy as a fundamental principle that should be protected by all democratic countries.

Electronic Payments

Swiss banks, as well as the post office (which handles some financial transactions) use an electronic payments system known as Swiss Interbank Clearing (“SIC”). The system is supervised by the Swiss National Bank and is operated via a joint venture. SIC handled over 250 million transactions in 2005, with a turnover value of 41 trillion Swiss francs.