Switzerland: the safe of the modern world

For centuries, Switzerland has been synonymous with financial security, neutrality, and discretion. Often called the "world's safe," it has attracted capital from all corners of the globe thanks to a unique combination of political stability, a strong currency, and, above all, strict banking secrecy. But how did this reputation arise? And how has it evolved to the present day?

The historical origins

The roots of the Swiss banking system date back to the 18th century. As early as 1713, the Grand Council of Geneva required bankers to register clients but not reveal their identities to third parties, laying the foundation for a culture of confidentiality. Geneva, a Protestant financial center, attracted religious refugees and capital from France and Italy.

In the 19th century, Switzerland's neutrality (formalized in 1815 at the Congress of Vienna) and political stability made the country a safe haven during European turmoil. The banks of Geneva, Zurich, and Basel specialized in private wealth management, attracting aristocrats and wealthy Europeans.

Codified banking secrecy: the 1934 law

The key moment came in 1934 with the Federal Law on Banks and Savings Banks. Article 47 made breaches of banking secrecy a criminal offense, punishable by up to three years in prison. Contrary to a widespread myth, this law was not introduced to protect Jews from Nazi persecution (although some Jewish capital did find refuge there). Rather, it was a response to the Great Depression, capital flight from Germany and France, and scandals such as that of the Commercial Bank of Basel, raided by French police in 1932.

Switzerland, neutral and stable, became a haven for those seeking to protect their assets from war, high taxes, and instability. During World War II, it attracted capital from both sides, including controversial Nazi deposits.

The apogee and the controversies

In the postwar period, banking secrecy exploded. Numbered accounts, underground vaults in the Alps, and a network of private banks (such as UBS and Credit Suisse) made Switzerland the world's leading offshore center. It managed the assets of dictators, tax evaders, and the legitimately wealthy. The financial center contributed 10-12% of Switzerland's GDP.

But shadows emerged: dormant assets of Holocaust victims, funds of corrupt figures (such as Marcos or Abacha), and accusations of aiding and abetting tax evasion.

The end of traditional banking secrecy

Since the 2000s, international pressure (USA, EU, OECD) has eroded the system. Scandals such as those of UBS (2009, billion-dollar fine) and Credit Suisse have led to the end of secrecy for non-residents.

In 2017-2018, Switzerland joined the OECD's Common Reporting Standard (CRS): automatic exchange of tax information with over 100 countries. Today, secrecy applies only to Swiss residents against cantonal authorities, and banks must identify beneficial owners to combat money laundering.

Switzerland today: still a safe haven?

Despite tax transparency, Switzerland remains a leader in wealth management (over 8 trillion francs under management). UBS, post-merger with Credit Suisse, is a global giant. The country is reinventing itself with fintech, crypto (Crypto Valley in Zug), and vaults for digital data or precious metals.

The "world's safe" is no longer as impenetrable as it once was, but its reputation for reliability, neutrality, and financial expertise endures. In a volatile world, Switzerland continues to be a safe haven, advanced yet true to its roots.