


                                Discretionary Accounts

                    If you have something on the order of $100,000 to
               invest (depending on the bank, more at most of them),
               you might consider a discretionary account with a Swiss
               bank. The bank will manage the investment for you,
               according to criteria you define. The investment will
               move among markets and currencies and instruments,
               according to the bank's best judgment.
                    For this sort of operation, you should consider
               Geneva's private banks, rather than the large
               nationwide Swiss banks. Most of these banks require a
               $250,000 minimum investment. Remember that most of the
               smaller Swiss banks (except for Baer and Vontobel,
               which are listed on the Swiss stock market) do not
               publish their balance sheets. Many of them will not
               accept business without an introduction. This is not a
               matter for a first-time overseas investor to undertake
               with only a book as a guide.
                    The leading Swiss private banks are Pictet,
               Lombard Odier, and Hentsch in Geneva. (Hentsch will
               take an account with $100,000, but the others probably
               will not.) They do not welcome walk-in clients. Two
               other private banks are a bit more accessible.
               Gutzailler, because it is a Eurobond issuer, and
               Vontobel, because it does corporate finance. It is
               possible to use a corporate banking relationship as a
               doorway to private banking services at these banks,
               which is why they are included in the listings at the
               end of this chapter.
                    Swiss banks have developed the gold storage
               business into a fine art. Although the days of sales
               tax-free gold buying in Switzerland are over, the fee
               for storing your gold in Switzerland is still quite
               low. The minimum for having a Swiss bank store your
               money is one kilogram (2.2 pounds) or 30 gold coins. It
               is perfectly legal for Americans to buy and store gold
               outside the United States. You do not have to declare
               to any authorities that you own gold abroad in any
               amount. However, you should declare for U.S. taxes any
               capital gain from a sale of gold.
                    Despite these options, most foreigners in
               Switzerland have simple bank accounts. Most of these
               are not numbered accounts, but ordinary name accounts.
               The minimums for ordinary accounts (which vary by bank)
               are much lower. You can arrange for your bank to keep
               your statements for you or send them in a plain
               envelope once a year. You can work out a code with your
               bank to be sure that, when you call, the person on the
               other end of the telephone actually is you. Most common
               is to give your mother's maiden name.
                    The largest banks operate throughout the country.
               Private banks are concentrated in Geneva because most
               of their clients historically were French.
                    Many Swiss bankers (and even bank employees at the
               bottom of the totem pole, such as tellers and
               switchboard operators) speak English. They also speak
               German, French, and Italian as a matter of course and
               frequently speak other languages as well, such as
               Spanish.

               Still the safest wealth protection haven

                    Based on liquidity ratio (a function of how easily
               a bank can cover its outstanding obligations by selling
               off its assets), the following banks are the safest in
               Switzerland, and perhaps the world.
                    These banks will open accounts for new clients
               only if they are known to the bank or are recommended
               by an advisor or correspondent with whom the bank is
               familiar.

                    Banque Financiere De La Cite
                    Banque Lausannoise de Portefeuilles
                    BFZ Bankfinanz
                    Cambio Valorenbank
                    Dreyfus Sohne & Cie
                    Ferrier Lullin & Cie SA
                    FIBI Bank (Switzerland) Ltd.
                    Guyerzeller Bank
                    PBZ Privatbank Zurich
                    Ruegg Bank Zurich

