Wealth managers report an increase in requests for the transfer of important amounts from wealthy families, in particular those with democratic sympathies. Transfers concern amounts ranging from tens to hundreds of millions of dollars and are mainly carried out from American brokerage accounts to Swiss accounts or located in the Anglo-Norman Islands of Jersey and Guernsey. These funds are often placed in liquid deposits or in extraterritorial fiduciary structures, reports The Telegraph.
Pierre Gabris, managing partner of the Zurich financial consulting company Alpen Partners notes that many customers are motivated by fear. The company receives requests from new American customers worried about the future of their assets. Requests for transfers of residences and changes in asset management places have increased in recent months, he said.
Regulations complicate access to Swiss banks
Switzerland has long been considered a tax haven. However, in recent years, the regulations have been tightened. Opening a bank account in Switzerland has become more complicated for American citizens. The Foreign Account Tax Compliance Act (FATCA) now obliges foreign banks to declare the holders of American accounts to the Rété Service internal (IRS).
Swiss financial institutions have adapted to these tax requirements and now share information on American account holders to avoid sanctions after paying billions of dollars in fines for complicity in tax evasion, specifies an American wealth manager.
-Be that as it may, strengthening the regulations make it more complex the opening of accounts in Switzerland for American citizens, even if solutions exist. Some Swiss banks have created entities registered in the United States to allow customers to have assets in Switzerland while being covered by wealth managers based in the United States.
Pictet, one of the largest Swiss financial groups registered with the SECURITIES Exchange Commission (SEC), reports a strong increase in requests through its subsidiary “Pictet North America Advisors”, a division created in Geneva to take care of resident or non-resident customers subject to the United States.
Experts also report that some investors seek to diversify their portfolios by opening accounts in foreign currency in order to reduce their dependence on the US dollar.
Despite the debates on its political neutrality since the invasion of Ukraine by Russia, Switzerland continues to attract investors. The country remains the main world hub for cross -border wealth management, underline the speakers interviewed. According to a Deloitte study, Switzerland managed around $ 2,200 billion in international assets in 2023, although its market share has decreased from 24 % to 21 % in four years.
Some experts suggest that the Trump administration could consider capital controls to limit the leak of American funds to extraterritorial banks and reduce the trade deficit. They believe that such measures could slow down the current trend of transfers to Switzerland.
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