SWISS BANKING FOR

INTERNATIONAL BUSINESS

Changed regulatory environment

Automatic Exchange of Information (AEOI) beginning in September 2018 in Switzerland, based on data collection in 2017 (banks are subject to AEOI, bilateral agreement between Switzerland and Russia not signed yet)

OECD Council accepted the Common reporting Standard (CRS) in 2014, 118 countries have committed

FATF Standards - definition of “controlling person“, guidance on transparency and beneficial ownership

Improving Global AML/CFT Compliance: on-going process

New legislations regarding offshore entities in several countries, for example Controlled foreign company (CFC) rules including Voluntary Disclosure Programme (VDP) in Russia

Currency Control rules in some countries (e.g. Russia, etc.) become more controlled using AEOI

Switzerland – competitive advantages

Stable, consensus-based, governance system designed to cultivate direct democracy

Peaceful, prosperous and modern market economy with a per capita GDP among the highest in the world, stable currency and low inflation, Monetary Policy and Interest Rate Stability

Internationally recognized standards of law

Data security and stability of the infrastructure

First-class, innovative and sustainable ICT (Information and Communication Technology)

High quality of life that attracts qualified professionals

Internationally known favourable tax environment

New companies, especially if active in the field of innovative technologies, are supported at both the federal and the cantonal levels through a vast number of available incentives and subsidies

Main competences of SwissbankingPrivacy & Legal Security - legal protection and confidentiality is provided through federal laws and regulations for the clients of Swiss banks (Bank Confidentiality remains on the same level. Exchange of the tax related data beginning in September 2018, based on data collection in 2017. Protection of financial privacy of law-abiding customers will continue to be ensured)

Technical Innovation & Efficiency in banking operations and managing corporate and individual assets using the most modern methods of information processing and communication systems

Reliability - social political and financial stability along with sustainability of fundamental banking principles

Professionalism - multilingual staff permanently trained in order to meet requirements of the comprehensive and demanding system of “Swiss Banking standard”

Networking - access to the global capital markets, financial and industry professionals, and service providers

Main obstacles for corporate accounts

Primarily private banking orientation of nearly all Swissbanks

Corporate banking usually is offered from top big banks only (UBS, CS) and cantonal banks

Banks prefer banking with Swiss companies, Swiss Ultimate Beneficial Owner (UBO) and Swiss Source of Wealth for equity and debt capital

Banks expects assets for Wealth Management purposes beginning from CHF 1-5 m (case by case) or equivalent in other currencies for non-Swiss companies

The volume of Assets under Management is not a key criteria for the banks but proper due diligence, clear picture about source of wealth and final UBO (physical person) according to the FATF standards

Even Swiss companies with an EU shareholder and/or UBO have difficulties opening corporate accounts at Swissbanks

Usually High transactional and administrational costs for accounts of non-Swiss companies are applicable

Tailor-made solutions

There are only few banks who may and are willing, under particular circumstances offer corporate banking for international corporate clients without expectations of assets for Wealth Management

Due diligence and compliance should be prepared according to regulatory framework

Account opening process needs to be moderated corresponding to the compliance expertise by sophisticated experienced professionals

Corporate account at a Swissbank

Full transparency about Ultimate

Beneficial Owner (UBO) of both company and

expected assets according to the FATF standards

Swiss entities, foreign entities from “non black

listed“ jurisdictions with actual

package of correct corporate

documents

Right choice of the right bank(s) for specific needs &

and approved contacts

(“people make the difference”)

Tax and legal advice from proven international and

local experts ensuring legal and

compliant structuring

Business plan and cash flow forecast including detailed information about senders, receivers

and economic reason of expected

flows

SOPHISTICATED DUE DILIGENCE IS THE KEY

Your trusted partner in Switzerland

💼 Gouzel Moussina

🏢 VIRTUE AG

🌍 www.virtue.ch

📧 gouzel.moussina@virtue.ch

☎ + 41 41 500 16 10

📱 + 41 79 794 82 80