MONEY MATTERS

The term Swiss account has become generic for bank accounts in 70-odd financial centres around the world, which like Switzerland promise a high degree of banking secrecy. It is believed that billions of rupees are stashed away by Indians in secret Swiss bank accounts and the Governments are defensive. The recent protocol amending the Double Taxation Avoidance Agreement between India and Switzerland has probably raised expectations in certain quarters as to the imminent availability of details of Swiss bank accounts allegedly opened by Indians to evade taxes or for any other purpose not quite legal in India. Several countries are hobbled by the fact that in Switzerland and other countries, which act as tax havens, bank secrecy is guaranteed by law. For banks in these countries maintenance of secrecy has been their unique selling proposition. It is an attribute for which depositors are willing to receive lower interest. It is not only for this secret accounts that people prefer Switzerland, but Switzerland has an extremely strong tradition of political and economic stability. Many other tax havens such as Bermuda, Bahamas and Cayman Islands too have strong connections-political and economic- with one or the other rich country. Tax avoidance at home may still be the strongest motive for individuals and corporations to open and operate these accounts. Another popular reason for people to use these accounts is the conversion rates available. You can use your own currency in these banks to keep your money. Americans and Europeans are also getting the swiss bank fever and everyone is migrating to it. The euro us dollar exchange rate is the best which we can get. The euro sterling exchange rate and also the sterling euro exchange rate are the highest in the market.  All these features make the swiss bank the bank of choice for people from all over the world.

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