swiss banking

SWISS BANKING AND INDIA:

SWISS BANKING AND INDIA Presented by- Anant Dhingra (10810004) Anuj Madaan(10810009) Maninder Pal Singh(10810029)

Agenda:

Agenda Introduction Why Swiss Banks? Swiss Bank Accounts & Laws Facts about Switzerland Swiss Bank History Money Laundering Hawala Preventive Measures

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Why Swiss banks are counted as safest banks in the world ? 1. Switzerland has had an extremely stable economy and infrastructure for many years. 2. Swiss bankers are also highly trained in investing and know how to grow your money. 3. Swiss franc is considered one of the world's premier currencies with virtually zero inflation and has been historically backed by at least 40 percent gold reserves. 4. Swiss banks are also known to have very sophisticated investment services and Internet banking.

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5. Swiss law forbids bankers to disclose the existence of your account without your consent 6. In Switzerland, if a banker divulges information about a bank account without permission, immediate prosecution is begun by the Swiss public attorney 7. Bankers face up to six months in prison and a fine of up to 50,000 Swiss francs

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Swiss Bank Accounts and the Laws Article 47 of the Federal Law ,1934 In following cases there is a duty for bankers to provide information regarding bank account . Civil proceedings (such as inheritance or divorce) Debt recovery and bankruptcies Criminal proceedings (money laundering, association with a criminal organization, theft, tax fraud, blackmail, etc.) International mutual legal assistance proceedings (explained in next slide)

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The Swiss Federal Banking Commission (SFBC) may communicate information only to the supervisory authorities in foreign countries subject to three statutory conditions: The information given can't be used for anything other than the direct supervision of the banks and can't be passed on to tax authorities. The requesting foreign authority must itself be bound by official or professional confidentiality and be the intended recipient of the information. The requesting authority may not give information to other authorities or to other public supervisory bodies without the prior agreement of the SFBC

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Swiss bank accounts are used by :- Corrupt Government officials Millionaires Criminals to hide ill-gotten wealth Middle class people People staying in countries with unstable government

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Some Facts about Switzerland Switzerland has four official languages that reflect neighboring cultures German dialects – 71% French – 20% Italian – 8% Romanisch – 1%

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Switzerland is not a member of the NATO, nor a member of the European Union The rights of the individual Swiss citizens are protected by three political safeguards A Weak Chief Executive The Referendum The Initiative

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Swiss Banks Two largest banks of Switzerland are Union Bank of Switzerland and Credit Suisse Group which together account for over 50 percent of the balance sheet total of all banks in Switzerland. Raiffeisen Group Regional and local Cantonal

History of Swiss Banking:

History of Swiss Banking Code of secrecy is over 300 years old The first Swiss banking clients were the kings of France The Great Council of Geneva , in 1713 , established regulations Bank secrecy was regulated only by civil law at that time.

Switzerland's Banking Act of 1934 :

Switzerland's Banking Act of 1934 Divulging Client Information become Criminal Offence Two Main Reasons Nazi Spies French Scandal with Basler Handelsbank

After World War II:

After World War II Jews Dormant Money In 1984, the people of Switzerland once again voted in favor of maintaining bank secrecy by a whopping 73 percent. Anti money laundering laws have been incorporated into the Swiss Criminal Code in 1990`s

Money in Swiss Banks:

Money in Swiss Banks Country Amount India $1891 billion Russia $610 billion China $213 billion UK $210 billion Ukraine $140 billion

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Money Laundering

Money-laundering Methods:

Money-laundering Methods Black Market Currency Exchange Structuring deposits Overseas banks Underground/alternative banking Shell companies Investing in legitimate businesses

Hawala:

Hawala

Effect on India:

Effect on India Tax evasion Terrorism Activities Drug trafficking Counterfeiting of Indian currency Transnational organized crime Human trafficking Corruption

Preventive Measures:

Preventive Measures Governments Efforts Prevention of Money-Laundering Act, 2002 came into effect on 1 July 2005 Proposed Indo-Swiss tax treaty Memberships Financial Action Task Force (FATF) Asia Pacific Group (APG) Egmont Group of Financial Intelligence Units

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Thank You