It is reported that the new Swiss proposal and earlier less dramatic moves to share information with the U.S. have many Swiss bankers and related enablers worried. See James Shotter, Swiss tax proposal jolts bank workers (Financial Times 5/31/13) here. Some of the personnel involved in the egregious conduct have already been indicted by the U.S. More are being considered for indictment, along with some of the more egregious banks who took in U.S. customers -- including significantly UBS customers -- after UBS was forced to close its tax evasion enabling business.
Not surprisingly, the money will move from -- or avoid in the first place -- Swiss Banks. This means the money must find another "haven." Now where will that be? Contemporaneously, a lot of wealth build-up is going on in SE Asia. Swiss banks might have been attractive in the past, but are less so now. See Martin Vaughan, Singapore, Hong Kong to Claim Larger Share of Offshore Wealth Pie (WSJ SEAsia 5/31/13), here. Some excerpts:
Private banks in Singapore and Hong Kong will capture an ever-larger share of global wealth held offshore as the ranks of the super-rich in Asia grow faster than elsewhere in the world, according to a report from the Boston Consulting group.
Offshore wealth rose by 6.1% globally to $8.5 trillion last year, the new BCG study said, and will continue to grow apace as high net worth people seek to protect their wealth by stashing it where there is political stability, a low tax burden and banking expertise.
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