by Doug Casey, International Man:

Switzerland has long been the world’s top offshore financial center. And for good reason. Its sophistication and professionalism are legendary. Plus, it has a distinct history, tradition, and culture that sincerely values privacy, neutrality, and independence.

Switzerland’s culture is its rare, secret sauce. That’s something that cannot be easily replicated by other jurisdictions. It’s what really sets Switzerland apart.

Recently we spoke with Robert Vrijhof, who has been in the Swiss financial industry for decades. We touch on some crucial topics that are becoming more urgent.

You’ll find the informative discussion below.

International Man: What are the benefits of having some of your money outside of your home country, specifically in Switzerland?

Robert Vrijhof: In our eyes, there are four key advantages of having some of your money offshore:

#1 Beating the home bias and access to Investment Opportunities

Most investors tend to have a home bias and are heavily invested in their home country and surrounding region. Having part of your wealth invested offshore enables you to enjoy true geographical diversification and to profit from the expertise of investors that have a different focus and view point than your local stockbroker. You also have easier access to other markets and international equities.

The first-class private banks that WHVP recommends offer all the services you would expect from a full-service stockbroker with the addition that you can purchase any security in the world, not just those listed on a domestic exchange.

#2 Protection against a sinking domestic currency

Over the years the value of the US dollar has declined. The question therefore has to be: how can you protect yourself from the loss in value of your investments? Listening to late night television, you might think the only option is to trade high-risk foreign currency options and futures.

There is a much easier, safer, and more conservative alternative – purchasing shares and bonds denominated in foreign safe haven currencies such as the Swiss franc.

#3 Protection from professional liability and other claims

Many Americans rely on domestic laws and instruments to protect their wealth from frivolous lawsuits. However, there are considerable variations between states, and some states provide little or no protection.

In combination with an asset protection strategy an offshore bank account offers the highest level of protection. We have decades of experience in dealing with trusts, LLCs and other structures and can always help you find the right partner if you don’t already have a structure in place.

#4 Enhanced privacy protection

Your wealth, spending habits and almost every other detail of your financial life is under scrutiny in the US. The US is one of the few nations where it is legal for banks and other financial services to disclose information about your accounts without your permission and without probable cause of wrongdoing.

Many disclosures that would be illegal in other countries are commonplace in the US. As a result, the army of information brokers, which advertise their ability to uncover assets, will not be able to pry information out of an offshore bank.

Switzerland is one of the best jurisdictions for private banking based on its long history as a financial center, the professionalism and integrity of its banks as well as its strict policy of neutrality and non-intervention. Switzerland’s exceptional status has developed over hundreds of years and is one of a kind.

The great stability of the Swiss Confederation has its roots in a highly developed conservatism. The long history of Swiss banking has given rise to a class of professional bankers, who, upon completion of university, undergo practical training in foreign exchange, portfolio management, securities trading and many other disciplines.

At the same time, bankers are given increasing responsibilities with only those demonstrating aptitude and integrity being permitted to deal with private clients and their assets. The result of this rigorous process is the creation of the world’s most knowledgeable and capable financial professionals.

Switzerland’s political neutrality continues to the present day. For instance, Switzerland has repeatedly rejected membership in the European Union due to concerns that doing so would compromise its neutral status and force it to take sides in international disputes.

International Man: Switzerland once had legendary financial privacy. Today, the US government and others have eroded much of it. How does this affect the attractiveness of Switzerland?

Robert Vrijhof: As you are stating correctly, things have indeed changed during the past decade. We do however feel that the changes overall are rather positive than negative for clients. The changes that took place have made it easier for US clients to find specialized professionals and to open offshore bank accounts in a compliant way.

The account opening process has become more transparent and the changes also lead to more independent asset managers registering with the SEC. The private banks we are partnering with have a wealth of experience in dealing with US clients, understand and comply with all relevant US rules and provide yearly tax statements that make it easier for clients to declare their taxes to the IRS.

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