Numbered bank account

A numbered bank account is a normal bank account where the name of the bank client is replaced by a number or a code word. A numbered bank account is under no circumstances anonymous and differs in neither legal nor tax matters from a normal banking relationship. The only difference is that the account holder is only known to a restricted number of bank employees and the name of the client does not appear in documents such as bank account statements. In Western Europe numbered bank accounts are offered to clients under certain conditions for example in Switzerland or in Austria.

Numbered bank accounts are regulated under both international and national laws, particularly concerning the fight against money laundering.[1] [2] In this matter, the Council of Europe recommended in 1980 to introduce identification requirements into national law.

Numbered bank accounts do not differ from normal bank accounts in legal and tax matters. Thus, at the opening of the banking relationship, the identity of the holder or beneficial owner has to be examined in accordance with the international and national guidelines. Furthermore all measures concerning combating money laundering have to be applied.[3] [4]

In fiscal matters numbered bank accounts are subject to usual fiscal legislations. Furthermore numbered bank accounts do under no circumstances differ from any normal banking relationship in inheritance and divorce matters.

[edit] References

1. ^ Switzerland: Bundesgesetz zur Bekämpfung der Geldwäscherei im Finanzsektor (Geldwäschereigesetz, GwG) (Money Laundering Act)
2. ^ Austria: Bundesgesetz über das Bankwesen (Bankwesengesetz –BWG) § 40ff (Federal Law on Banking)
3. ^ Switzerland: Agreement on the Swiss banks' code of conduct with regard to the exercise of due diligence (CDB 03)
4. ^ Austria: FMA, Austrian Financial Market Authority - Circular on Identification and Verification of Identity