Swiss laws are very strict regarding the relationship between a bank and its customers.  If the bank violates this relationship a punishment shall be imposed. Banks must very careful therefore and not divulge any kind of information regarding their customers, without, taking permission.

Punishment

Swiss law treats a violation by the bank very seriously. The Swiss public attorney will immediately start prosecution against the bank.

The punishment imposed could be up to 6 months of imprisonment and a fine of 50,000 Swiss Francs.  In addition you may even sue the bank separately.

Exceptions

There are certain exceptions to this strict law of privacy. Information may be divulged if criminal activities are taking place. This includes drug trafficking, organised crime or insider trading.

Privacy

The biggest advantage of having a Swiss bank account is the privacy that you can enjoy. The privacy allowed to a customer is indeed a blessing. You might not want anyone to know about your money.

As long as you are within the boundaries of law no one will find out about your money.

Switzerland

Another reason why people like having a Swiss bank account is due to the stability that Switzerland provides. Switzerland is one of the few countries who have not faced any wars since the year 1505. Switzerland has a very steady economy and infrastructure. Additionally Swiss bankers are very experienced and can be trusted with your money.

Swiss Banking Act

The Swiss Bankers Association governs the protection of deposited money. They passed a regulation known as the Depositor Protection Agreement. The agreement was codified into law in 2004 and is known as the Swiss Banking Act now. A few improvements were made to the laws though.

The new law applies to all deposits as well as non-bank securities dealers.  It is important for banks to win over the trust of customers. It was for this reason that the Swiss Bankers Association created a self-regulatory Agreement with member banks in 1984.

The basic gist of this agreement is that when there is a bank failure the depositors should not lose out. The depositors should be able to obtain their legal privileged claims. A high capital adequacy has also been listed out as important in the Agreement.

Safe

The last advantage of Swiss bank account is that they are very safe. The Franc has nearly a zero percent inflation.  It also features internet banking and refined investment services.