Switzerland is a small but very attractive country for foreign investors mostly because of its banking system. Banking activities in Switzerland are regulated by the Federal Act on Banks and Saving Banks, shortly known as the Banking Law of 1934. Swiss banks were known for their regime of not divulging information about their clients, but in 2009 the Banking Law was amended and Switzerland started concluding tax treaties with other countries that allowed banks to reveal information about the account owners.
In order to engage in bank activities, there are some requirements to be fulfilled according to the Swiss Banking Law. These requirements are:
Limited liability companies are allowed to conduct banking activities in Switzerland and will be considered cantonal banks. Also, according to the Banking Law two or more companies are entitled to form financial groups and are allowed to conducts banking activities if:
The Financial Market Supervisory Authority in Switzerland is the main regulatory body in relation to banking activities and has the following responsibilities:
The Swiss Financial Market Supervisory Authority is composed of a board of directors, an executive board and an extended executive board.
Switzerland continues to be one of the world’s favorite banking destinations even with the new regulations on bank secrecy. Swiss banks are professional and secure. Moreover, Swiss banking has kept the pace with the new technology and adapted to them. Banks in Switzerland provide nowadays electronic fund-transfer services, encryption security services and electronic signature services for its clients. Switzerland has very strict regulations about banking activities which makes it one of the safest countries for those wanting to keep their assets safe.
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