The Services of Technomic consultants in opening Swiss bank accounts.

Most non-Swiss residents may open personal bank accounts in Switzerland (there are some restrictions, however, for residents certain countries). The important issue is for the bank to be sure of the legal origin and use of the funds deposited. TCSA can play a key role in assisting the client and the bank comply with the "due diligence" requirements now in force in Switzerland.

To open accounts now requires a personal visit. The banks insist on it. The large banks require a minimum of CHF 5,000. Amounts of several tens of thousands and more must be shown to "clean", i.e. be earned from legitimate business as distinct from criminal activity. Once a client move into the 100s of thousands of dollars, the client calls upon "private banking" services. Again the money must be shown to be legitimate, so the bankers must "know their client", which really implies a personal meeting.

Non-residents may be able to open accounts without our help if they write in advance, fix an appointment and visit personally. However, we can make life much easier as we can introduce customers to the several banks with whom we have relations, but only for people with whom we can establish a personal relationship, as our recommendation must be based on reality, i.e. on a personal meeting. We have no role to play for people who cannot visit Switzerland (apart from sending them a paper), or who are not prepared to meet us personally for a candid (and totally confidential) discussion.

American citizens and Green Card holders are reminded that they are requested by the US Treasury to declare foreign accounts over $10,000. If they wish to hold American securities through their bank account, they must complete the "W9" form. If they choose not invest in US securities, their banking secrecy is maintained.

Swiss ATM cards are issued with an account. All ATMs in Switzerland take the card of any Swiss bank for withdrawing money. For withdrawing cash at ATMs outside Switzerland, a bank-issued credit card or debit card is needed. Visa or Mastercard can be issued provided the monthly limit on the card is left on a blocked account. The debit card, or 'EC Card', now linked to the Maestro/Cirrus networks, requires blocking of at least CHF 3,000.

Interest rates in Swiss Francs range from 0.5% for current accounts to 2% for savings accounts. All interest in Switzerland is subject to a withholding tax of 35%, not returnable for foreign residents. This tax avoidable for amounts over CHF100,000 by the use of "Fiduciary deposits". This involves your bank depositing the money off balance sheet outside Switzerland for a fixed number of months. Interest is paid gross at the pertaining short-term rates for the currency (roughly LIBOR), l ess the bank fees of 0.25% per year, but with a minimum which may be as high as CHF200 per operation. The minimum fee implies that an investor needs several months of fiduciary deposit of multiples of CHF 100,000 (or equivalent) to make it worthwhile.

Banks in Switzerland have expanded enormously their e-banking facilities and electronic securities trading. Unfortunately the War against Terrorism has made most countries try to prevent residents from using international e-banking other than to interrogate the account. However, for some banks, provided the client comes physically to Switzerland to sign the relevant papers, Swiss law applies and e-banking (and e-trading) is allowed wherever the client is located.. Still some banks, especially the larger ones, may refuse e-banking to foreigners.

Alternative investments avoiding withholding tax can be found in bonds, and in investment funds

As we have tried to make clear, we can help only for people willing to visit Geneva. Quite clearly all Swiss banks are becoming more reluctant to open accounts for foreigner without a personal introduction and personal visit.

If we represent the account holder's interest to open an account in his personal name:

• EUR 300.- for the introduction if the address for correspondence is the account holder's own address
• EUR 300.- then EUR 100.- per year if the account holder wishes to use our address for correspondence. Add to this the cost of postage.
• EUR 1,000 for introduction to private banking services.

If the account is a corporate account, these fees are doubled. However, there are stringent requirements on properly authenticated corporate documents, as well as, in the case of the big banks, a demand for large amounts of blocked funds. It may even be easier to create a Swiss subsidiary, and this brings other advantages.