Numbered bank account
Encyclopedia
A numbered bank account is a type of bank account
where the name of the account holder is kept secret, and he identifies himself to the bank by means of a code word known only by the account holder and a restricted number of bank employees, thus providing the holder with a degree of bank privacy in their financial transactions. Numbered bank accounts are frequently associated in the public mind with a desire by the account holder to either minimize governmental scrutiny and taxation, perhaps to conceal an illegal or unethical origin of the money in the account or to avoid arbitrary government interference in the affairs of a political dissident. For this reason, numbered bank accounts are illegal in most banking jurisdictions, but are available (subject to heavy international regulations) in some Western European countries with a long tradition of specializing in international banking, such as Switzerland
and Austria
; the holder has to be fully identified but there is no law that enforces the bank to fix the name of the holder in the title of the account.
Modern numbered bank accounts are not fully "anonymous", but they do serve to provide the account holder with a greater degree of protection from scrutiny while minimizing the exposure of the account holder's name in public settings. For example, the Swiss banking system (in contrast to banks in other countries) will not reveal information about an account (whether "numbered" or not) to any governmental agency unless proof of deliberate fraud is established, not merely the non-reporting of assets in order to avoid taxation. However, bilateral treaties negotiated in 2009 between Switzerland and a number of countries may weaken this type of protection from scrutiny, as did a special agreement negotiated in 2009 between the USA and Switzerland concerning clients of the bank UBS SA.
In order to restrict the use of numbered accounts for money laundering
and other forms of financial fraud, the Council of Europe
mandated in 1980 that numbered bank accounts be subject to international and domestic regulations pertaining to the verification of the identities of account holders and their activities. Under these regulations, banks which operate numbered accounts may be required by a court order to reveal the owner's name and financial details, and the identity of the holder or beneficial owner must be examined for obvious fraudulent intentions at the start of the banking relationship. Since July 1, 2005, Switzerland (as the largest holder of European numbered bank accounts) has also charged a withholding tax on all interest earned in the personal Swiss accounts of European Union
residents, a measure designed to satisfy EU tax requirements while still preserving account holder anonymity.
As important as the actual bank account would be the possibility to anonymously fund a company to generate money flow.
Bank account
A Bank account is a financial account recording the financial transactions between the customer and the bank and the resulting financial position of the customer with the bank .-Account types:...
where the name of the account holder is kept secret, and he identifies himself to the bank by means of a code word known only by the account holder and a restricted number of bank employees, thus providing the holder with a degree of bank privacy in their financial transactions. Numbered bank accounts are frequently associated in the public mind with a desire by the account holder to either minimize governmental scrutiny and taxation, perhaps to conceal an illegal or unethical origin of the money in the account or to avoid arbitrary government interference in the affairs of a political dissident. For this reason, numbered bank accounts are illegal in most banking jurisdictions, but are available (subject to heavy international regulations) in some Western European countries with a long tradition of specializing in international banking, such as Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
and Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
; the holder has to be fully identified but there is no law that enforces the bank to fix the name of the holder in the title of the account.
Modern numbered bank accounts are not fully "anonymous", but they do serve to provide the account holder with a greater degree of protection from scrutiny while minimizing the exposure of the account holder's name in public settings. For example, the Swiss banking system (in contrast to banks in other countries) will not reveal information about an account (whether "numbered" or not) to any governmental agency unless proof of deliberate fraud is established, not merely the non-reporting of assets in order to avoid taxation. However, bilateral treaties negotiated in 2009 between Switzerland and a number of countries may weaken this type of protection from scrutiny, as did a special agreement negotiated in 2009 between the USA and Switzerland concerning clients of the bank UBS SA.
In order to restrict the use of numbered accounts for money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
and other forms of financial fraud, the Council of Europe
Council of Europe
The Council of Europe is an international organisation promoting co-operation between all countries of Europe in the areas of legal standards, human rights, democratic development, the rule of law and cultural co-operation...
mandated in 1980 that numbered bank accounts be subject to international and domestic regulations pertaining to the verification of the identities of account holders and their activities. Under these regulations, banks which operate numbered accounts may be required by a court order to reveal the owner's name and financial details, and the identity of the holder or beneficial owner must be examined for obvious fraudulent intentions at the start of the banking relationship. Since July 1, 2005, Switzerland (as the largest holder of European numbered bank accounts) has also charged a withholding tax on all interest earned in the personal Swiss accounts of European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
residents, a measure designed to satisfy EU tax requirements while still preserving account holder anonymity.
As important as the actual bank account would be the possibility to anonymously fund a company to generate money flow.