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We call private banks ‘private’, because they are world-known for secrecy. People need private offshore banks at Switzerland or Caymans to keep confidential account’s documents as an issue between the banker and his client.

How does the bank secrecy actualize in practice that is dual. Firstly, most offshore banks that are supposed to be private are located in countries with strong bank secrecy laws. For instance you can check the Swiss law on banks or the Cayman Secrecy Act. Second, a typical feature of a private bank is its exclusivity. By keeping the number of customers down to a privileged few, and limiting the size of their own personal well-managed private banks may limit the chances of a leak.

Very importantly, a small private bank that has no operations outside its country of origin (often a tax haven or offshore financial center), need not respond to requests for information from foreign authorities.

Some private banks to go further by offering ‘numbered’ accounts. Even if a numbered bank account is not the same as an anonymous bank account, it can protect the identity of a private bank client from 3rd parties. When the customer makes a transfer, his account is identified by an account number, but his true identity is protected by offshore banking.

But when the private banks themselves to establish and expand operations outside their jurisdiction, no amount of tricks, intrigue accountants, banks tank or organizations can protect the identity of their customers. When a private bank in an island or offshore tax haven opens a branch in a country seeking information on bank accounts around the world to its citizens, it stops at this point to offer an advantage of bank secrecy. In many cases where banks have handed over confidential records show.

So, is a small well-run private bank in a country known for its secrecy laws guaranteed to keep your account secure and private?

Although this is one of the most confidential banking secrecy, in a country is never guaranteed. Increasingly, the alternatives are used to protect the confidentiality of independent banking secrecy laws. Financial companies and offshore trusts, for example, which are allowed to hold client funds can legally protect their customers from the three parties. In all cases, due diligence must be completed, usually a notarized copy of passport and proof of residence is the minimum.

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