swiss banking for international business
TRANSCRIPT
SWISS BANKING FOR
INTERNATIONAL BUSINESS
Changed regulatory environment
Automatic Exchange of Information (AEOI) beginning in September 2018 in Switzerland, based on data collection in 2017 (banks are subject to AEOI, bilateral agreement between Switzerland and Russia not signed yet)
OECD Council accepted the Common reporting Standard (CRS) in 2014, 118 countries have committed
FATF Standards - definition of “controlling person“, guidance on transparency and beneficial ownership
Improving Global AML/CFT Compliance: on-going process
New legislations regarding offshore entities in several countries, for example Controlled foreign company (CFC) rules including Voluntary Disclosure Programme (VDP) in Russia
Currency Control rules in some countries (e.g. Russia, etc.) become more controlled using AEOI
Switzerland – competitive advantages
Stable, consensus-based, governance system designed to cultivate direct democracy
Peaceful, prosperous and modern market economy with a per capita GDP among the highest in the world, stable currency and low inflation, Monetary Policy and Interest Rate Stability
Internationally recognized standards of law
Data security and stability of the infrastructure
First-class, innovative and sustainable ICT (Information and Communication Technology)
High quality of life that attracts qualified professionals
Internationally known favourable tax environment
New companies, especially if active in the field of innovative technologies, are supported at both the federal and the cantonal levels through a vast number of available incentives and subsidies
Main competences of SwissbankingPrivacy & Legal Security - legal protection and confidentiality is provided through federal laws and regulations for the clients of Swiss banks (Bank Confidentiality remains on the same level. Exchange of the tax related data beginning in September 2018, based on data collection in 2017. Protection of financial privacy of law-abiding customers will continue to be ensured)
Technical Innovation & Efficiency in banking operations and managing corporate and individual assets using the most modern methods of information processing and communication systems
Reliability - social political and financial stability along with sustainability of fundamental banking principles
Professionalism - multilingual staff permanently trained in order to meet requirements of the comprehensive and demanding system of “Swiss Banking standard”
Networking - access to the global capital markets, financial and industry professionals, and service providers
Main obstacles for corporate accounts
Primarily private banking orientation of nearly all Swissbanks
Corporate banking usually is offered from top big banks only (UBS, CS) and cantonal banks
Banks prefer banking with Swiss companies, Swiss Ultimate Beneficial Owner (UBO) and Swiss Source of Wealth for equity and debt capital
Banks expects assets for Wealth Management purposes beginning from CHF 1-5 m (case by case) or equivalent in other currencies for non-Swiss companies
The volume of Assets under Management is not a key criteria for the banks but proper due diligence, clear picture about source of wealth and final UBO (physical person) according to the FATF standards
Even Swiss companies with an EU shareholder and/or UBO have difficulties opening corporate accounts at Swissbanks
Usually High transactional and administrational costs for accounts of non-Swiss companies are applicable
Tailor-made solutions
There are only few banks who may and are willing, under particular circumstances offer corporate banking for international corporate clients without expectations of assets for Wealth Management
Due diligence and compliance should be prepared according to regulatory framework
Account opening process needs to be moderated corresponding to the compliance expertise by sophisticated experienced professionals
Corporate account at a Swissbank
Full transparency about Ultimate
Beneficial Owner (UBO) of both company and
expected assets according to the FATF standards
Swiss entities, foreign entities from “non black
listed“ jurisdictions with actual
package of correct corporate
documents
Right choice of the right bank(s) for specific needs &
and approved contacts
(“people make the difference”)
Tax and legal advice from proven international and
local experts ensuring legal and
compliant structuring
Business plan and cash flow forecast including detailed information about senders, receivers
and economic reason of expected
flows
SOPHISTICATED DUE DILIGENCE IS THE KEY
Your trusted partner in Switzerland
💼 Gouzel Moussina
🏢 VIRTUE AG
🌍 www.virtue.ch
☎ + 41 41 500 16 10
📱 + 41 79 794 82 80