Swiss Bank Heaven for Money from Around the World

Bank is a type of financial institution that performs various services, such as providing
loans, circulating currency, monitoring currencies, acting as a place of storage of valuables,
financing company business (Abdurrachman, 2014).

Etymologically, the notion of bank comes from the word "Banco" which means bench.
The bench in question is a table to support banking activities in serving customers. In the future,
the term bench will continue to grow until the term bank is used in financial service activities. In
terminology, the notion of a bank is a financial institution of a country established with the
authority to collect, manage and regulate all matters related to finance. The hope is that banks
will be able to maximize the use of financing to drive the economy and improve people's
welfare.

Switzerland is not only famous for its chocolate and watch-making industries. This
country is also known for its unique financial and banking system. Swiss banks have been
considered the most secretive and guarded in the world for centuries. US economists from the
Tax Justice Network, TJN, call Switzerland the "grandfather of the tax haven". In September
2015, the Association of Swiss Bankers reported that the country's banks had deposited up to
US$6.5 trillion, 51 percent of which came from abroad. This makes Switzerland the king of
cross-border asset management, controlling 28 percent of the market. About a third of the total
money held outside a person's country of origin, which is about hundreds of billions of dollars, is
held in Swiss banks. Foreigners living in unstable and troubled areas are also more likely to
deposit money in secure Swiss banks than banks in their country of residence. Account holder
secrecy in Switzerland is very strict. Switzerland has made several compromises to their
country's secrecy laws, thanks to international pressure, but these are still considered very strict.

Switzerland has two major banks namely UBS and Credit Suisse. Switzerland's
popularity as a World Bank safe haven has several reasons, namely:
1. The country has a very stable and prosperous economy,
2. One of the highest per capita incomes in the world.
3. The country was also neutral for many years, especially during the two world wars,
4. The Swiss Franc is one of the most stable currencies in the world.
 Swiss banks must adhere to very strict privacy rules. In 1934, a law was passed to
prohibit Swiss banks from disclosing the names of account holders. Banks protect the privacy of
their customers in a way no other country in the world does. If a Swiss bank employee discloses
something about a person's bank account without permission, he or she has committed a criminal
offence. Such regulations make Switzerland a popular destination for foreigners who don't want
to pay taxes in their own country.

Nonetheless, the Swiss government has recently come under pressure from other
countries to change their banking laws, forcing it to reveal the names of drug dealers or
international criminals. EU officials say that more and more citizens are moving their money to
Switzerland to avoid taxes in their home countries. Income that is not reported to the government
is often sent to and held in Swiss banks. In the last decade Swiss bank officials have worked
closely with international financial experts to fight money laundering. Under the new law, they
must report any financial transactions that look suspicious.

It's also important to note that not all of the wealth in Swiss banks comes from criminals.
Being the safest place to keep money has earned the reputation of a Swiss bank which is very
popular among the world's billionaires. Many big businessmen tend to keep some of their wealth
in Swiss banks to protect themselves from bad things. Swiss banks also tend to remain safe and
immune from most global disasters and wars. Because of its nature, nothing beats the guarantee
of security and confidentiality of money stored in Switzerland.

Reference:
[1] http://repositori.unsil.ac.id/575/6/2.BAB%20II.pdf
[2] https://www.ocbcnisp.com/id/article/2021/07/15/pengertian-bank
[3] https://www.cnnindonesia.com/internasional/20160407144455-134-122386/sepuluh-negara-
surga-pajak-tempat-harta-disembunyikan
[4] https://www.offshorecompanycorp.com/id/id/insight/jurisdiction-update/why-are-swiss-
banks-considered-as-bank-of-the-world?
gclid=Cj0KCQiAtICdBhCLARIsALUBFcFy2Vejf2CnEwZPI539lEh2tbxr9B4JrTLNcusSVFrZ
OW5OpkojYGEaArhmEALw_wcB
[5] https://money.kompas.com/read/2021/10/01/084706226/mengapa-banyak-orang-kaya-ri-
sembunyikan-uang-di-bank-swiss?page=all#page2
[6] https://jateng.tribunnews.com/2021/10/01/banyak-miliarder-sembunyikan-uang-di-bank-
swiss-ini-alasannya?page=all