The private Sarasin bank says clients withdrew SFr2.4 billion ($2.6 billion) in the second half of 2011.
Its report on its annual figures issued on Thursday warned of further outflows in 2012 “owing to the implementation of its strategy focusing on tax-compliant assets”.
Let's put that another way: when Swiss banks aren't allowed to take stolen money (and tax evaded money is stolen money) then they haven't got a business model to sell. That's what they're about in the main, as the source of this bank's funds indicates:
The bank says that about 40 per cent of its clients are domiciled in Switzerland, and 37 per cent in the rest of Europe. Clients in the Middle East and Asia now account for 18 per cent, while the proportion from other parts of the world has shrunk to five per cent.
Not much of that 60% is, I am pretty sure, there because of the interest rate on offer, or even the investment management on offer. It's there to hide and it's hiding because it has reason to do so. The Swissinfo report even implies as much.
That's why we have to shatter the secrecy of Swiss banks and nothing less will do. I'm not picking on this one bank; I'm saying this of all Swiss banks. When their business model is built on the basis of hiding the proceeds of crime then the world at large has the right to demand reform and to back it up with sanctions. Until Swiss bankers (indeed, all bankers) can show they will always reject dirty money their industry stands discredited.
Which is a reason for wider spread reform as well.
After all, why are British banks also such big tax haven players?
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Richard – the fact that some money is leaving Switzerland is not particularly good news.
Switzerland is a place (i) over which the EU has some (very) limited leverage and (ii) which has at least exhibited some (limited) willingness to enter agreements (like the 2003 ESTD and the recent bilateral treaties with the UK and Germany) to facilitate the taxation of non-residents’ assets deposited there.
This money is moving to places like (in no particular order) the Bahamas, Singapore, the United States, Hong Kong, etc. over which the EU has no leverage whatsoever, and which are unlikely to agree to information exchange standards beyond the bare OECD minimum.
In short, these assets are far less likely to be ever taxed in Singapore than they are in Basel.
And we then knock them out, one by one
What is quite amusing (to me at least) is that in the desperate race to avoid tax at 40% + interest & penalties, someone might lodge their funds in, eg BVI.
When there is a revolution in BVI, they will certainly be holding onto all that gelt. It’s forfeit.
Richard – it took extract 50 years to extract some limited concessions from Switzerland. Luxembourg and Austria are blocking progress towards a European solution to banking secrecy (which is not helped by the fact that the EU Commission seems to be run by half-wits).
That is inside the EU or on its doorsteps….
How long will it take to knock down (as you say) the Bahamas or (especially) Singapore? And can it even be done?
Not long at all
It’s called the domino effect
Once they’re falling….