Switzerland Fact-File Part 7:
Individual Business Owner Welfare and Lifestyle

7.5 Switzerland Individual Business Banking Services

Domestic and International Banking Services

Switzerland is one of the major banking centres in the world, with Zurich and Geneva in particular major financial hubs. The Swiss National Bank is the country’s central bank but does not have regulatory powers, nor does the federal government own shares in the bank; its shares are publicly traded. The two largest Swiss banks are UBS AG and Credit Suisse, which between them have more than 50% of market share of bank deposits. They have an extensive network of branches throughout the country.

Whilst the secrecy of the Swiss banking system is well documented, in reality each individual bank account customer can easily be identified if a court requires this to be done. However, Swiss banks have a tradition of protecting their customers’ confidentiality more than banks in other countries. Some EU countries (eg Germany and Italy) have recently declared amnesties for investors to declare their investments in Swiss bank accounts in return for minimizing fiscal penalties.

Branches of major foreign banks that are present in Switzerland including Barclays, Lloyds TSB and RBS Coutts from the UK and Citibank and Merrill Lynch from the USA. Other major foreign banks present in Switzerland include Banco Santander and Credit Agricole.

Opening a personal bank account in Switzerland is not a straightforward matter and involves strict procedures. Banks do reserve the right to decline applications if they have reservations about the individual’s source of funds. A Swiss bank account cannot at present be opened via the Internet, as Swiss banking regulations currently do not allow this. Thorough checks are carried out to establish a person’s identity, the source of any funds, and details of an individual’s existing banking arrangements in their home country. Swiss banking laws require that banks must perform ‘due diligence’ and verify the identity of potential customers.

A company may open a Swiss bank account, whether a resident entity or not. If the company is recorded in the Swiss Commercial Register, then identification can be obtained by the bank from the entry in the register. For companies registered outside Switzerland, a company must produce recent documentation to prove that it is genuine.

Often, in such a case, it is easier to apply to open a Swiss bank account in a branch located in the person’s native country, where face-to-face meetings can take place.