Today, with so many standards and regulations, you can’t really keep away from anything. Secret bank accounts are a thing of the past and once again, they weren’t even fully secret.
People often use privacy and secrecy interchangeably, but they’re two different things. Even if you can still open a numbered account (no name, but just numbers), there are still a few managers who can access your data. Today, nothing’s secret at all, yet there are still options to enhance privacy.
No matter why you need this level of secrecy, here’s everything you need to know about secret bank accounts.
Secrecy Vs. Privacy in Bank Accounts
Secrecy means no one should know anything about your account. That’s less likely to happen because in order to open an account, you’ll need to provide some documents, including some form of identification.Privacy, on the other hand, means a solid level of confidentiality when it comes to your bank account, from transactions to personal details.
Now, you probably know already that all banks have to adhere to some standards. No one can really access your data, unless there’s a hack, a leak or an investigation. Simply put, privacy is a standard every bank adheres to.
On a different note, secrecy was never 100% all in. While your details could’ve been kept secret from bank employees, there were always a few managers who could access your info. That’s how numbered accounts became popular.
You could sign up and get a numbered account, which obviously came with a fee. Personal data was usually kept on external systems on site, such as safes. Only a few managers could access these details.
Such accounts were mainly aimed at high-net-worth individuals, rather than average people. In case of an investigation, secrecy became a thing of the past, since managers had to release data.
When it comes to privacy, there are still countries out there where privacy is the main focus. Take Switzerland, for example. Often referred to as the world’s financial hub, Switzerland has invested in high security protocols to ensure there are no leaks or hacks.
If you think about it, it's something every bank in the world should have, yet some countries do it better than others. So, while Switzerland excels at privacy, banks in other countries can provide similar standards too.
Privacy also means your data is kept safe, rather than used for third parties, advertising and other similar issues.
Bottom line, every bank in the world offers privacy, yet some banks are more effective at doing it by the book. Once again, that’s not secrecy. In the event of an official investigation, your account data can still be released.
Jurisdictions Where Privacy Matters
While you’re less likely to get a secret bank account in Switzerland, you can definitely get a secure and private one. The country has very strict privacy regulations, as well as some of the toughest banking laws. That’s why banks in Switzerland are famous for their high degree of confidentiality.Throw in the stability and neutrality of the country and you will have one of the best destinations for wealth management.
Singapore isn’t too far behind. The rising star in banking privacy excels with its political stability, yet its financial laws are just as strong. It’s one of the most transparent countries as well, so it’s adhered to some of the world’s standards for disclosure.
Liechtenstein also brings in a solid private banking sector. It’s politically stable and provides access to conservative practices in terms of money. It’s mainly a destination for corporations and high-net-worth people looking for security and privacy. Its official currency is the Swiss franc.
Luxembourg is very similar too. It’s known for its privacy and secrecy laws, so more and more people turn to it for asset diversification and protection. Financial services are deeply customized to ensure customers get the most from this experience.
Monaco and the USA follow strict standards too. However, such countries also embrace AML and CRS laws, so any potential issue means information is exchanged between them.
Countries with high privacy standards include Greece, Austria and Portugal too. Germany, France and Denmark are known for their relatively high privacy standards too.
Once again, remember that privacy is basically a matter of security and data leaks. If you do get in trouble, your information can still be released. It’s not full of secrecy.
Legal Requirements Affecting Privacy
The CRS (Common Reporting Standard) is a worldwide standard that allows automatic exchanges of financial information between governments and banks, only to ensure individuals and companies don’t use offshore accounts for money laundering, terrorism and other illicit activities.Surprisingly for some, the USA isn’t part of the CRS, yet it has strong control over its citizens, as they need to report offshore accounts too. Countries that haven’t adhered to this standard yet include:
- Cambodia
- Bosnia and Herzegovina
- Belarus
- Botswana
- Congo
- Guatemala
- Myanmar
- Chad
- Iraq
- Paraguay
- Serbia
There are a few more on the list, which gets shorter and shorter every year. However, some of these countries are known for political and financial instability. Furthermore, high levels of corruption could indicate that your money is less likely to be safe anyway.
The AML (Anti Money Laundering) is similar. It’s basically a set of policies and laws that clearly aim to prevent money laundering. Once again, it’s an international standard that more and more countries embrace, meaning they’re more likely to share information in order to prevent crime.
Based on the FATF (Financial Action Task Force), there aren’t too many countries on the non-AML list. Besides, they’re strictly monitored and pressured to adhere. Having a bank account in these countries could give you some privacy, but just like for CRS, there’s the risk of political instability.
Some non-AML countries include:
- Angola
- Algeria
- Lebanon
- Yemen
- Syria
- Côte d'Ivoire
- Lebanon
Given the internal conflicts some of these countries have, AML is the last thing they worry about at the moment. But at the same time, it would be too much of a risk to get an account there.
Monaco has also been intensely monitored for rejecting this set of laws. Often seen as a playground for the rich, the small country is still considered a private place to keep money, yet local bank accounts often come with high requirements.
