As we already know that Switzerland is not only famous for its delicious chocolates, cheese, and Roger Federer but it is also the world’s largest center for offshore wealth.

Yesterday, it came as a news that in 2017 Indian funds in Swiss banks hiked by more than 50 percent. Though the bank is so much popular amongst India and various other countries than why this Switzerland bank which is also known as Swiss bank is not so often in the news. Besides this one, another question that comes to mind is that Why do they attract foreign funds as well?

Regarding financial secrecy the Swiss bank has been ranked number one according to an international advocacy group this year, that is fairly above the US and the Cayman Islands. The Swiss bank utmost financial secrecy services are also called “the grandfather of the world’s tax havens”.
According to a recent news Switzerland’s most famous bank, the Swiss bank banking system is based on the following three key factors:- : an “infamous tradition of banking secrecy”, “political stability”, and “a ‘financial consensus’ has generally protected the offshore financial services centre against major political challenges.

Some years back in 1997 it was the first time when Swiss bank publically declared funds held by Indians in a Swiss bank.

Regarding this one of the topmost economist Mohan Guruswamy, said that nowadays due to an increased transparency of funds, deposits in Switzerland have been reducing day by day. And people instead of depositing money in Swiss bank account are reaching numerous other destinations like Singapore, Dubai, Lichtenstein, Austria and the Cayman islands for depositing their money.

Mohan Guruswamy further explains that banks in these destinations are the best place to deposit illegal money and exempt from tax evasion for over and under-invoicing, and criminal activity like narcotics and other smuggling activity.
“Switzerland is going legit, like the Corleone family,” Mohan Guruswamy says, referring to the protagonists of the Godfather film trilogy.
Guruswamy in his conversation further added that nowadays due to increased in transparency the majority of the Indian funds going to Switzerland are legal and the majority of the total funds belong to NRIs and companies who have RBI clearances.
“Illegal money rather moves to other places where the rulers and governments offer protection”, he added.