Whenever we think of a very rich person or a swindler, kind of the same now a days, the word “Swiss Bank” comes to our mind for their huge deposits. This word has melted so effortlessly in our mouths that’s its almost become a phrase rather a meme for better understanding. So what kind of sorcery does this bank do for black money, what facilities is it providing that all our Ambanis rush there?
So Swiss Bank is a Swiss investment bank and financial services company located in Switzerland. The chief benefits they provide are low levels of financial risk and high levels of privacy. In fact The Swiss Banking Law of 1934 made it criminal for Swiss banks to disclose the name of an account holder. They take the privacy policy so seriously that over time this facility has been used to hide Nazi wealth. They help countless other to keep a low profile which helps frauds to stay away from the radar and can launder money at ease. The account holders details are only revealed at extreme cases of criminal charges. According to reports the total amount of Indian black money deposited in UBS bank is $1.4 trillion. Not only this the currency, Swiss Franc is very stable which makes it more lucrative for black money deposits. Swiss Banks are called tax heavens due to their solidity as they don’t give out commercial loans. All these humongous perks make them a different and wanted bank. Many countries have opposed this however Swiss reprimanded all. The two big banks are UBS and Credit Suisse where most accounts are opened.
Now here is something for us to think: 50% of the accounts opened in Switzerland are in UBS and for this it has a deposit of over $2.5 trillion which means people deposited more than $2.5 trillion in Swiss bank, which very conveniently is also the GDP of India.
Now why is it considered a safe bank. Recently PMC bank gave out a huge commercial loan and when the loan got default to repay the bank had no money, and the depositors had to face this storm. Since Swiss banks do not give out commercial loans they don’t face such liquidity crunch. Another freebie that depositors enjoy is that they don’t pay interest on the deposit instead they pay fees to the Swiss bank which is as low as 0.6%. Due to all these “arrangements” made by the bank it becomes a sweet spot to stack up your black money. What they merely do is that find someone who converts their money to Swiss Franc and easily deposit it in the Swiss Bank. Sometimes people also open accounts in the name of their company to avoid any kind of attention. A huge amount of money from India is also deposited in Swiss Bank by various people.
“Black money is so much part of our white economy, a tumor in the centre of the brain – try to remove it and you will kill the patient.”
Wonderful read!