Thread by @YMehta_

Why do the rich open accounts in the Swiss Bank?

Since our childhood, we are hearing that rich people in #India and other countries have their account in #SWISSBANK.

In this #thread🧵, let's see major reasons for this.

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Let's Begin...

James Bond had a dialogue in the movie "The World is Not Enough" (1991) which goes like, "If you can't trust a Swiss Banker, what's the world come to?"

The dialogue is the essence of the Swiss Bank culture of confidentiality and trust.

It all goes back to the 18th century when European elites had started parking their money in Geneva, Switzerland.
In 1713, Swiss Government Authorities had lawfully prohibited banks from sharing information about their customers.

In 1934, sharing customers' details and information had become a crime, if done in the absence of a criminal complaint.

Years passed by and the global rich, who didn't want to get questioned for their wealth, started getting attracted to the Swiss Bank culture of secrecy, trust, and confidentiality.

However, this does not mean that anyone can open an account in the Swiss Bank.

𝑊ℎ𝑜 𝑐𝑎𝑛 𝑜𝑝𝑒𝑛 𝑎𝑛 𝑎𝑐𝑐𝑜𝑢𝑛𝑡 𝑖𝑛 𝑆𝑤𝑖𝑠𝑠 𝐵𝑎𝑛𝑘𝑠?

Despite the confidentiality, Swiss Bank do ask for basic details like KYC of account holders and also have the right to track the account holder, if ever required.

Still, there is a high degree of secrecy and this is what attracts these rich companies, business persons, etc. to the Swiss Bank.

𝐵𝑙𝑎𝑐𝑘 𝑀𝑜𝑛𝑒𝑦:

Now you may think that all the money deposited in Swiss Bank is black money or tax-evaded money, but that's not 100% true.

However, Indians have been in the limelight of having Swiss Bank accounts filed with huge deposits of tax-evaded/black money.

𝐼𝑛𝑑𝑖𝑎𝑛𝑠' 𝐵𝑙𝑎𝑐𝑘 𝑀𝑜𝑛𝑒𝑦:

Many politicians, time and again, have made promises of bringing back the Black Money of Indians that is parked in the Swiss Bank.

According to reports, it was found out that Indians' funds in Swiss Bank jumped to over ₹20,700 crores in 2020, the highest in 13 years.

When India was in news for the same last year, the government had responded saying that there did not appear to be a significant possibility of such a jump in Indians' funds.

It is worth noting that India and Switzerland have had a system of automatic exchange of information in tax matters since 2018.

𝐸𝑥𝑝𝑒𝑟𝑡 𝑂𝑝𝑖𝑛𝑖𝑜𝑛 𝑎𝑛𝑑 𝑡ℎ𝑒 𝐺𝑟𝑜𝑢𝑛𝑑 𝑅𝑒𝑎𝑙𝑖𝑡𝑦:

In 2019, Indian Authorities had for the first time received the details of all Indian residents have accounts in Swiss Bank.

However, experts believe that the official data only includes the legal wealth parked by Indians there and has no account of black money that goes there through tax havens.

Despite all this, Swiss Bank continue to remain popular and attract the rich from across the globe.

That's all about Swiss Bank and Black Money.

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