Why Switzerland? Asset Protection

WHY SWITZERLAND?

Asset Protection
In times of trouble in the world, investors from all over the planet traditionally move money into Switzerland and the Swiss franc, or into gold bullion for protection. You want your money in the safest location possible, where nobody other than yourself can access, freeze or grab your assets or obtain account information. You want your money in a bank that is rock-solid, like the Swiss Matterhorn.

A Swiss bank account can be considered primarily as a global hedge. Swiss banks have always played a neutral role as bankers and investment managers and, indeed, as a banking center for the world. Estimates are that over 30% of the world's private wealth are held by the Swiss financial institutions. There are good reasons for the wealthy, and indeed, prudent citizens to hold financial assets in a Swiss bank. Why? Swiss banks are the strongest financial institutions in the world, competent, efficient and multilingual. Swiss banks disclose information to no-one, except you, their client. (Swiss Bank Secrecy Laws of 1934). By tradition, banking policies in Switzerland are generally conservative. Because of the lack of a deposit insurance system North American style, Swiss bankers must be very careful in their business practices to safeguard your deposits.

Play it safe - Open an account

The world has been on a disinflationary course for the past 10 years or so, which may lead to a deflationary credit collapse and major asset deflation. This could escalate into a depression that would make 1929 look like a picnic. Other respected economists argue that a long period of prosperity is ahead, fuelled by the "baby-boomer" phenomenon and its purchasing power. Nobody really has the definitive answer. However, isolated financial accidents in one or another market, such as the recent "hedge fund" scandal, will trigger more regulations and financial restrictions. At the same time, opportunities abound.

You cannot plan for all possible financial problems ahead, but you can - and should - play it safe and hold part of your liquid capital in jurisdictions outside your own, in a place like Switzerland that respects financial privacy. Switzerland has a very stable political system, long traditions of respecting and preserving individual financial freedom and integrity, one of the world's most advanced capital markets and, of course, a strong Bank Secrecy Act written into the Swiss Constitution. You can depend on it, but criminals are not protected by it.

Swiss Banking -strong and protected as ever
By Robert Vrijhof, President, Weber Hartmann Vrijhof & Partners Ltd. Zurich www.whvp.ch

Swiss banking is a main pillar of our nation's economy. Its share of the gross domestic product exceeds 10% and has grown by about 1/3 in the past 5 years, which shows just how dynamic Swiss banking is. Switzerland and its banks are well placed to continue their historic leading role in the global banking system. That's because we enjoy economic and political predictability and stability, as well as sensible regulation, excellent infrastructure, very low taxation and, of course, legal banking secrecy. This positive banking environment is enhanced by constant scrutiny and quality control that ensures stability in the financial system. At the same time, free market forces allow enough room for profitable investments.Our continuing goal is to offer all market participants a business environment that keeps Swiss banks strong, internationally competitive and, equally important, clean. Swiss politicians continue to fight for client confidentiality and, at the same time, our government prevents abuse by criminals.In Switzerland, full confidentiality between a bank and its clients long has been guaranteed by statutory law. Protection of these relationships is viewed as totally legitimate and its support is deeply rooted in our national political thinking. We Swiss, however, have a moral, as well as legal, obligation to prevent criminals from abusing our well known banking secrecy. We have in place a strict code of conduct and we refuse to accept dirty money. Our national prosperity depends on enforcement of these basic principles. We are always open for discussion and ready to cooperate, but within clearly defined legal limits. That's the way that it looks from our Swiss perspective.

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