A Guide to Swiss Banking - Part 2
In the first part of this guide, you learnt about some of the
main benefits of Swiss banking. You also discovered how to open
a Swiss bank account, and how to use it for savings and
investment purposes. In this second part, we deal with making
deposits and withdrawals.
Deposits & Withdrawals How can I deposit money in my Swiss bank
account?
Once your account has been opened, you can deposit money to your
account in several ways:
Cash deposit Traveller's check deposit Securities deposit
Transfer from another account Receive a bank transfer Personal
checks Bank checks
Selecting the most appropriate method of deposit depends on the
amount deposited, the degree of confidentiality desired and the
level of convenience.
Can traveller's checks be tracked?
The issuing bank can discover where traveller's checks were
cashed. In fact, you are always required to reveal your identity
when making a purchase with traveller's checks. Since each check
is identifiable by a unique number, it is possible to trace it.
However, in practice this type of search is rarely conducted.
Can I make a deposit with a postal order?
At the time of writing this, there are no known restrictions in
Switzerland regarding receiving deposits in the form of postal
money orders to your Swiss bank account. However, you should
verify that the postal system you are using allows you to send
money to a foreign bank account.
Can I make a deposit to my Swiss bank account via Western Union?
Western Union's services are only for individuals wishing to
transfer money to other individuals. At the time of writing
this, it is believed not to be possible to use Western Union to
deposit money to a Swiss bank account.
How can I withdraw money from my account in Switzerland?
There are several ways you can withdraw money from your Swiss
bank account:
Credit card Cash withdrawal By traveller's checks Bank transfers
Checks
Selecting the most appropriate method of deposit depends on the
amount deposited, the degree of confidentiality desired and the
level of convenience.
Which credit cards can I use with my Swiss Bank Account?
For the fastest access to your Swiss bank account, a credit card
offers the freedom to access your funds, 24 hours a day.
Wherever you are, you can withdraw cash discreetly from ATMs.
How can I get a credit card?
You can acquire a credit card as long as you make a security
deposit. Swiss banks do not conduct credit inquiries: the
security deposit is considered to provide the security the bank
requires.
Which credit card offers the most confidentiality?
Most banks offer credit cards without the bank logo.
Nevertheless, experts can identify your bank by the first four
digits of your credit card number. If you wish to avoid any
connection to the bank, you can, in some cases, request a card
be issued by an institution other than your bank. It is illegal
for credit card companies to provide any information on
cardholders. Just like the banks themselves, credit card
companies are bound by Swiss professional secrecy.
How do I use a credit card discreetly?
Discreet cardholders will: Use their credit card exclusively at
ATMs Avoid using their card in shops, restaurants and abroad*
Never pay for services in their country of residence*
The credit card slip issued during transactions contains
information about your account: identification of the bank (or
at least the country), your first name and last name.
Bank transfers
Generally, it takes two or three working days to transfer money
from your Swiss bank account to an account in another
industrialised country. However, this timeline may vary due to
reasons beyond the control of your Swiss bank.
These delays may arise from a number of reasons:
The nature of your transfer
The way in which you transmit your request for payment to your
bank affects the time it takes to complete a transaction. If you
send your request to your bank by regular post, it should take
two or three working days to process your order. Using online
banking services though significantly reduces this delay.
SWIFT*
Currently, 90% of all banks worldwide use the SWIFT network
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to
carry out international bank transfers. SWIFT is a computerised
system which allows banks to exchange internationally recognised
messages that indicate credited amounts and authorise debits.
Some banks in developing countries are not affiliated with the
SWIFT network and transmit this kind of information by telex. As
a result of this, the time taken to transfer your money can be
greatly delayed.
Affiliated Banks
SWIFT only transmits a message. In order for the operation to be
completed efficiently, the receiving bank must have an account
at the head office of the issuing bank. Generally, every major
bank holds direct accounts at the head offices of other major
bank and thus an interbank transfer can easily and quickly be
made.
If the receiving bank does not have an account with the issuing
bank, the wire transfer must go through an affiliated bank that
can link the two banks. Sometimes, it is necessary to call upon
several affiliated banks in order to transfer the money to the
final receiving bank. This may take longer and each intermediary
may also charge a commission for their services.
Currency
A wire transfer must take place through one of the countries
which issues the currency. For example, a wire transfer in US
dollars paid to an Italian bank must pass through an
intermediary in the United States. As a result of this, the
operation may take longer, depending on the currency being
transferred. *SWIFT (Society for Worldwide Interbank Financial
Telecommunication) is a company incorporated under Belgian law,
whose headquarters is located in Brussels. Its role is to
facilitate international banking operations through a very
powerful computer network. SWIFT was founded in 1973 by 239
banks in 15 different countries and now more than 7,125
institutions in 192 countries subscribe to it.
Check books
Checks and check books are very rarely used in connection with a
Swiss bank account. Your bank can prepare bank checks on your
behalf, but this is rarely wise. The reason for this is that a
check issued by your Swiss bank informs a number of people that
your Swiss account exists, which imperils your confidentiality.
Furthermore, it takes several weeks for a check to be completely
processed.
If you wish to withdraw funds from your Swiss bank account, we
would recommend using your credit cards as this is faster, more
efficient and a more discreet.
Confidentiality
All Swiss banks are obliged to ensure that any information held
about you or your account is strictly confidential.
Swiss bank secrecy is one of the strictest in the world and is
part of an ancient Swiss tradition of privacy. Under Swiss law
any banker who reveals information about you without your
consent runs the risk of a prison sentence.
Privacy
The only exceptions to this rule are in regard to serious crimes
such as arms smuggling and drug trafficking. In the event of
accusations of tax evasion, your privacy is still guaranteed in
Switzerland as failure to report income or assets is not
regarded as a criminal offence in Switzerland. This means that
neither the Swiss government, nor any other government, can
acquire information about your bank account. Should they wish to
obtain any such information, they must first convince a Swiss
judge that you have committed a serious crime punishable under
the Swiss Penal Code.
Private Matters
Bank secrecy will not be lifted for private matters such as
inheritance or divorce as long as your banking information is
held in strict confidence as is the case with nearly all Swiss
bank accounts. Your account must be proven to exist if a judge
wishes to pursue the case. This is why a numbered Swiss bank
account provides the maximum level of confidentiality.
Fiorenzo Fontana
http://www.forextrading-system.com - online trading, currency
trading, financial service
About the Author Fiorenzo Fontana
About the author:
Fiorenzo has held several senior positions in the financial
services industry as a trader and analyst at UBS. Fiorenzo has
built a career spanning more than 25 years in investment banking
and capital markets trading. Mr. Fontana is a citizen and
resident of Switzerland and a graduate of the Chiasso Business
School, Switzerland.
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