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Bank secrecy analysis

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Accountant-Lecturer
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General public
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finance
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California

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Ipcrow L.
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documents in English
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case study
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7 pages
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  1. Introduction
  2. In Switzerland, Bank secrecy
  3. Fabien Alberty
  4. Private banking
  5. U.S Bank secrecy act, enacted in 1970
  6. Conclusion

Banks under the protection of secrecy are forbidden to give out information about the accounts of their customers to the authorities unless there are special circumstances, such as filed criminal complaints about the customers (Kingsbury, 2009). The main features of banks that provide bank secrecy include personalized customer care and more advanced security systems to safeguard both identity and capital of the customer. For these reasons, their services are more expensive than similar services by regular banks (Cartwright, 2005).

In Switzerland, Bank secrecy was created by the Swiss-banking act in 1934 and resulted in the formation of the world famous Swiss bank. Bank secrecy is one of the fundamental principles of private banking. Creation of private banking is Switzerland saw the emergence of Swiss banks as the most-reputable banks in the world. Literature and films portray them model-banking systems where all the influential persons, celebrities and leading politicians have accounts. In the list of people in the list of prominent Frenchmen with Swiss accounts included the richest men in France in the day, including the Peugeot brother among other wealthy families.

[...] This is not the case with private banking. The cons of private banking outweigh the pros by far, for this reason, private banking brings more problems that solutions and is, therefore, unsuitable. Unless major improvements are made, current trends will lead to the total destabilization and eventual demise of these banking systems (Kingsbury, 2009). Bibliography Blum, J. A., & United Nations Office for Drug Control and Crime Prevention. (1998). Financial havens, banking secrecy and money- laundering. New York: United Nations. [...]


[...] Swiss Bank Corporation. (1983). Banking secrecy and mutual assistance in criminal matters. S.l.: S.B.S. Dilley, D. K. (2008). Essentials of banking. Hoboken, N.J: Wiley. [...]


[...] In handling and covering up those transactions, if the allegations are true, then they are responsible for the losses of countless lives around the world. Their involvement major scandals demonstrate the problems that arise due to secret banking. However, recent studies suggest that private banking is just a tool used by criminals. As of now, it is the simplest and most-convenient way to hide money, but upon its removal, more innovative, possibly more difficult methods to trace are bound to arise. [...]


[...] They are subject to extreme punishment. This encourages compliance and enhances the reputation of the Swiss banks (Kingsbury, 2009). However, due to sustained pressure, the situation in Switzerland has changed in recent years. Other European countries such as Austria and Luxemburg however have held on to their policies despite call and sustained pressure from the European Union, especially Germany. Two and a half account information from tax havens in 170 countries around the worlds leaked to 86 journalists recently. Upon examination of these taxes, governments discovered that the majority of them were used to evade taxation. [...]


[...] Bank secrecy is one of the fundamental principles of private banking. Creation of private banking is Switzerland saw the emergence of Swiss banks as the most- reputable banks in the world. Literature and films portray them model- banking systems where all the influential persons, celebrities and leading politicians have accounts. In the list of people in the list of prominent Frenchmen with Swiss accounts included the richest men in France in the day, including the Peugeot brother among other wealthy families. [...]

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