We have extensively reviewed how the controversial laws in Switzerland have not only contributed to its economic stability, but at the same time have made tax fraud easier, in a previous post. Now the Swiss face a more urgent problem; the fear of a slow economic wipe out. When all the developed world is focused on a massive crackdown of banks that allow secretive accounts and therefore promote tax evasion and fraud, and the Swiss banks have historically been the ‘eye candy’ of all such investigations and allegations, the wealthy and affluent of the world have started moving their assets to other more ‘favorable’ places, thus threatening the image of this economic deity.
According to estimates Western Europeans may move 135 billion francs ($139 billion) from Swiss banks, which amounts to 15 percent of their total assets. If Swiss banks do not adapt to a more open banking system that takes them off the radar of investigations, their existence might be at stake here. These doomed predictions were made by Herbert Hensle, global head of the Strategy & Transformation team of Cap Gemini, SA. Clients have already pulled 3 billion sfr from their offshore accounts, Bank Sarasin reported last week.
It is ironic, though not unexpected, that the country that has recently made pompous claims regarding its economic stability in the face of the euro crisis could suffer from a similar crisis in terms of ‘assets’ that it is has been so proud of lately. For more information on history of Swiss banks and raids by authorities, read Switzerland: Economic Stability Built on Theft and Fraud.
