“We don’t command the winds, but we can adjust the sails !”November, 23 2012
Stormy weather for the Swiss financial place
Is Singapore The New Switzerland ? Private Banking’s New Home. The question was asked lately by April Rudin in the Hufftington Post.
“Beyond Singapore’s private banking affability, lies an economy, climate and destination which seems light years away from Europe (medieval times?) and the United States (third-world country?)” argued the journalist
…Interesting, however, I am struggling to see what real advantage Singapore would offer the existing clients of Swiss banks and trust companies.
See also our highlights comment : The Swiss Version of Global Warming
While some undeclared assets seem to have been moved to Singapore in anticipation of the Rubik agreements, some weeks ago we learned that : “Singapore plans to classify tax evasion and abetting tax evasion as money-laundering predicate offences so that the powers used to investigate and prosecute money laundering will be available to seize the proceeds of tax crimes” and this could make Singapore less attractive as a safe haven for undeclared assets.
There is little doubt that total assets in Switzerland will be reduced when the Rubik agreements enter into force next year but Switzerland’s solid position as a key wealth management centre will most likely remain. It does seem to be a good long term solution for the clients and HNW with undeclared assets as they should take advantage of available amnesties or indeed restructure their affaires.
I have said a few times in articles that we are moving towards a situation where you can run but you can’t hide. If you admit this then it is a question of finding the amnesty or arrangement which would allow you to declare your assets at the most favourable conditions. This would of course depend on the country of residence of the individual. Residents of Austria, Germany and UK should look closer at the Rubik agreements as these agreements would allow them to keep their secret nestegg in Switzerland should they so wish.
Accordingly at Investlogic to support our clients we apply the famous sailmen motto :
” We don’t command the winds, but we can adjust the sails ! “