Switzerland is one of the most economically-thriving nations.  In fact, the country’s gross domestic product is the largest in the world.  Switzerland is considered one of the world’s largest offshore financial service center with 500 banks, two of which are big banks and the rest smaller banks.  The Swiss financial service industry is renowned for stability, confidentiality, protection, and security of their clients’ information and assets.  It is one of the favored offshore banking centers that the country holds about 35% of the world’s private assets.

Since the 1980s, the country has adopted considerable measures in order to reorient the Swiss banking system so that their banks are catering more to larger companies.  Banks are more focused on providing sophisticated bank service to larger accounts rather than their conventional small-to-medium size accounts.  There has been a common misconception that people can store unaccounted wealth safely in Swiss banks.  This may be true to a certain extent, but Switzerland has been taking measures in order to establish its financial service industry to be against money laundering and organized crimes.

The Federal Banking Commission or FBC, created under the Banking Law of 1934 and amended on 1999, regulates the creation and operation of the banking sector of the country.  It controls the regulation of deposit, although the control and supervision of banking activities does not include securities trading or bonds issuance.  A bank must secure a license with the Federal Banking Commission in order to operate and maintain business.  The rules and regulations implemented by FBC merely echo the stern provisions of the Banking Law.  There is a great emphasis placed by the law and FBC’s regulations on confidentiality of information and safety of assets, although there are exceptions to implementation of secrecy rules especially in cases of money laundering and organized crimes.  This is the primary appeal of Switzerland to investors, companies and depositors.