As political uncertainty has heightened under the Donald Trump administration, reports have surfaced about asset holders inside and outside the United States trying to transfer their assets to Switzerland.
On the 24th (local time), the Financial Times (FT) reported, citing local asset management industry sources, that demand for opening bank and investment accounts in Switzerland in a manner that meets U.S. tax requirements has significantly increased.
This is attributed mainly to uncertainty regarding President Trump's policy direction. Josh Matthews, co-founder of the asset management company Maseco, told FT, "This movement is the first since concerns about the collapse of the U.S. banking system spread during the financial crisis."
Pictet, one of Switzerland's largest financial groups, stated that the demand from U.S. clients of its subsidiary "Pictet North America Advisors" has significantly increased, and an asset manager mentioned that they are currently assisting a U.S. asset holder in transferring assets valued at $5 million to $10 million (approximately 730 million to 1.46 billion won) to Switzerland.
According to the report, under the Foreign Account Tax Compliance Act (FATCA), U.S. citizens cannot open bank accounts in Switzerland; however, it is possible to open accounts and manage assets through Swiss asset management companies or firms registered with the U.S. Securities and Exchange Commission (SEC).
These movements illustrate that despite the controversy surrounding Switzerland's political neutrality following Russia's invasion of Ukraine, Switzerland maintains a strong position as a global asset management hub.
Pierre Gabris, CEO of Swiss asset management firm Alpen Partners, stated, "In recent months, inquiries from U.S. clients regarding residence transfers and changes in asset management locations have continued to increase," adding that "especially among those opposed to Trump, there are many who make decisions based on feelings of unease." He further noted that "many of these individuals have backgrounds from countries like Israel and India."
Additionally, some clients are reportedly attempting to diversify their portfolios by opening Swiss accounts to reduce their reliance on the U.S. dollar.
However, Swiss banks have faced criticism for falling into a tax evasion haven due to their strong security. Since 2008, the U.S. government has conducted widespread investigations into Swiss banks that aided tax evasion using Switzerland's bank secrecy regulations, and since 2013, Swiss banks have restructured to comply with FATCA by transparently sharing U.S. client information.
An asset management industry source noted, "Recently, Swiss banks have been transitioning to a structure where they maintain registered corporations in the U.S. while keeping clients' assets in Switzerland and providing services to U.S. resident clients."