Bank safe deposit boxes in Switzerland:
Does financial anonymity still apply?

Subject to certain conditions, international investors can open a bank safe deposit box in Switzerland to store their assets. The Swiss Confederation is traditionally considered a protector of personal property, renowned for its stable financial and economic policies. Swiss bank safe deposit boxes thus seem an ideal option for storing valuables anonymously. But is this really the case?

With the advent of negative interest rate policies, more and more Swiss citizens were opting to withdraw cash from their bank account and deposit it in a bank safe deposit box instead. International customers likewise find it attractive to store precious metals, cash and other assets in banks in third-party jurisdictions. But unlike many other neighbouring countries, Swiss institutions are not obliged to keep a central safe deposit box register which government authorities could access.

Nevertheless, some of Switzerland’s other financially oriented regulations could still have a potentially negative impact. Some issues prospective customers might cautiously investigate further include:

What are the implications of the automatic exchange of information (also know as Common Reporting Standard CRS) agreement?
Is a bank account required to access safe-deposit facilities, and are there any associated fees?
Do hirers receive all available keys to their safe deposit box?
Is insurance included or possible?
What restrictions apply in respect of the stored valuables?

Find out more about bank safe deposit boxes in Switzerland here.

Opening an account, additional fees and approved contents

In principle, Swiss financiers welcome customers from all over the world. Yet whether they are Swiss citizens or customers from abroad, every potential safe-deposit tenant must first open a current- or savings account with the respective bank. This means that the credit institution will automatically collect and hold your customer data. Furthermore, you may become liable for additional management fees, especially where the provider is not your own bank. Such arrangements mean customers must deposit a sum of money with the bank – money which the safe-deposit box tenant must then use to pay rental fees, which are charged annually in advance.

Almost anything that has tangible or intangible value can be stored in a safe deposit box facility: precious metals, jewellery, cash, securities, artworks or documents. However, illegal, dangerous or perishable goods such as drugs and radioactive or explosive substances are not permitted. Some bank safe-deposit box agreements may require proof of the type of items stored and/or insist upon a declaration of value.

Safe deposit box rental, key deposits, access and insurance

It is difficult to compare the annual fees providers charge for bank safe deposit boxes because there are no standard sizes. In addition to this, there are bank account fees, which in some instances can add up to several hundred francs per year. Larger rental safes and vaults may even cost as much as 10,000 CHF per annum or more, and some bank operators may also request a four-figure sum as a key deposit for customers residing outside of Switzerland. In return, customers receive two keys for each individual safe-deposit box and, on payment of the appropriate fee, can usually arrange to place one key in the bank’s key depository.

Access to a bank’s highly secure vault is usually only possible by appointment during normal bank opening hours. But safe deposit box users cannot enter the facility alone: First, an upstream locking mechanism must be unlocked. Access to a safe deposit box then typically requires the use of two further keys, one held by a bank employee and the other held by the customer.

Some banks occasionally offer insurance, but only for low-risk theft cover. It’s not usually possible for a safe-deposit tenant to extend an insurance to cover their contents against fire, water, vandalism and natural hazards.

Banking confidentiality, the AEOI agreement (or CRS) and reporting obligations

Unlike many other countries, banking confidentiality is still highly respected and widely practised in Switzerland. However, this does not necessarily mean no data will ever be passed on to a third party. Though Swiss banks do not routinely maintain a central safe deposit register nor operate an associated automatic account retrieval procedure, all banks are still subject to the automatic exchange of information about financial accounts (AEOI or also called Common Reporting Standard CRS). This multilateral agreement is a binding provision which primarily applies to bank accounts rather than safe deposit boxes. So information about the existence of a safe deposit and its contents (even if known) will not be passed on.

However, Swiss financial institutions are still required to observe reporting obligations. So if there is reasonable suspicion of any tax offences (e.g. the creation of a shell company), money laundering, or terrorist financing, Swiss banks must inform the respective authorities, report money laundering to the appropriate authorities, and provide all relevant customer data.

The key points about bank safe deposit boxes in Switzerland

Swiss bank safe deposit boxes are suitable for storing gold and silver as well as jewellery, securities, documents and artworks.
Customers from abroad can rent a safe deposit box in Switzerland.
Opening a bank account with the provider is a pre-condition. External customers may incur high additional fees.
Safe-deposit tenants usually receive two locker keys, but should expect to pay a high key deposit.
Access is only possible during normal business hours. Customers must arrange their own insurance.
The AEOI agreement (or CRS) excludes the transmission of safe deposit box data. However, there is still an obligation to report any suspicious activity (e.g. money laundering, tax evasion). It is thus impossible to guarantee complete anonymity.

Conclusion: Swiss bank safe deposit boxes are expensive!

If you add up all the costs associated with a bank safe deposit box in Switzerland, you will quickly come to the conclusion that storing precious metals or other valuables in a bank safe deposit box is becoming far too expensive. In addition to the annual rent, fees and insurance, there is also the cost of account management (which can run to several hundred francs per year). This expenditure represents a significant drawback, even though it offers security and partial discretion – but not anonymity.

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