Banks in Switzerland are monitoring the transfers of their Russian clients to determine whether they pay taxes in Russia. Clients that do pay taxes in Russia have reportedly been notified that their accounts may be closed.

According to the report, citing sources in the banking and legal industries a number of banks have warned clients who pay taxes that their accounts may be shut down.

About ten people have applied to our law firm, who have so far received unofficial calls from bank employees warning that if they do not stop being owners of companies located in Russia and paying taxes, the bank would have to close their accounts.

Roman Kudinov, managing partner of the Swiss law firm LEOLEX, told this to a news outlet. He added that there has been no official action yet and the notifications have so far been few.

Another Swiss lawyer told RBK that his clients have already had their accounts blocked because of taxes paid to the Russian budget, but did not specify which banks were involved.

Credit Suisse declined to comment on the report when asked by RBK. Other Swiss banks did not reply to inquiries. Kudinov said the banks explain the decision by the fact that the taxes their clients pay are used to fund the military operation in Ukraine.

The lawyer says he believes that banks are being forced to take action by the Swiss authorities, which have been under pressure from international partners to step-up the enforcement of the sanctions on Russia.

This includes calls for Swiss banks to stop servicing Russian clients and freeze and seize more Russian assets.

According to recent calculations by the Swiss State Secretariat for Economic Affairs (SECO), around 7.5 billion Swiss francs ($8.3 billion) worth of Russian assets have been frozen in Switzerland since the EU imposed sanctions on Moscow over the military operation in Ukraine.

US Ambassador to Switzerland Scott Miller said this is not enough given the amount of Russian assets held in Swiss banks, which he claims is between 150 and 200 billion Swiss francs.

However, SECO head Helene Budliger Artieda said earlier this week that blocking more assets would require evidence that the funds are connected with sanctioned entities or individuals.

She also reiterated that the Swiss government does not plan to confiscate the frozen assets as it would violate Swiss law, and will not pressure the country’s financial institutions to stop serving Russian clients.

A new study from advocacy group Tax Justice Network reveals that Switzerland is the world’s most-corrupt country, with a high secrecy score of 76, followed by the USA and the Cayman Islands.

The Swiss will exchange information with rich countries if they have to, but will continue offering citizens of poorer countries the opportunity to evade their taxpaying responsibilities.

Switzerland is the grandfather of the world’s tax havens, one of the world’s largest offshore financial centers, and one of the world’s biggest secrecy jurisdictions or tax havens.

The index ranks countries for the assistance their legal systems provide to money-launderers, and to all people who seek to protect corruptly-obtained wealth. The higher the secrecy score, the more corrupt the government is.

US becoming world’s biggest tax haven

According to the report, the USA secrecy score (60) is rising, which results in attracting corrupted wealth. In 2013, the USA was in the sixth place, and in 2015 it took the third in the rankings.

Between 2015 and 2018 the USA increased its market share in offshore financial services by 14%. In total the USA accounts for 22.3% of the global market in offshore financial services.

Cayman Islands, Hong Kong, Singapore, Luxembourg, Germany, Taiwan, the United Arab Emirates, and Guernsey closed out the top-10 most corrupt countries.

RT. com / ABC Flash Point News 2023.

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Boring Boris
Boring Boris
13-04-23 15:55

We see the Swiss have weaponized their banks for geopolitical purpose. We see their willingness, if not eagerness, to obey their western bankster masters. What a disgrace for a once great nation’s banking system.

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Reply to  Boring Boris
13-04-23 16:07
Kate Chon
Kate Chon
13-04-23 16:05

Switzerland is the hub of all evil, CERN is there. It is a portal to Hell, one of the original 7 gates to Hell.

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13-04-23 16:06

Swiss banks may become insolvent in the very near future. Just issuing the “warning” could and should trigger a bank run from depositors all over the world. Decentralized crypto stable coins are calling.

18-04-23 02:04

Typical Swiss cheese, getting punished for paying taxes?