Dormant accounts Dormant accounts from WWII became an issue in the mid 1990’s when World Jewish Congress (WJC) decided to go after Swiss banks for funds they claimed should have been given back to the survivors or their descendants. According to the WJC, $1.24 billion was paid out to funds set up by Swiss banks ("Report: Swiss Banks ' Holocaust Fund Paid out 1.24 Billion Dollars," 2013). So how do the Swiss banks handle regular dormant accounts? From first sight it seems like it would be easy, unlike holocaust survivors and victims’ descendants that have spread out all over the world after the war. Private accounts are private, and if a customer dies without leaving beneficiary information or company goes out of business accounts are…show more content… The toxic securities came to $38.7 billion CHF (Shotter, 2013). As the economy improved UBS was required to buy back a portion plus interest.
Secrecy, Tax Evasion, and Money Laundering The degree to which tax evasion and money laundering have been investigated in recent years, the validity of having such secrecy has been questioned again. In 2003 the European Union reached an agreement to phase out banking secrecy, but in fears that the clients will withdraw funds and deposit them in Switzerland, “the three member nations that have secrecy laws, Belgium, Luxemburg, and Austria, would be permitted to keep those laws so long as Switzerland does” (Meller & Langley, 2003). The EU countries, banks will be held to withholding a 15% tax on the earnings of account holders. So what is money laundering? Our trip to HSBC, Nick Batterton, provided us with a detailed overview and a case scenario to show just how easily one may launder money. The three core stages of money laundering are the placement, layering, and integration. You must first enter your illegal funds into the financial system through deposit, usually through a legitimate looking business. Then you layer or launder, where you make multiple complex transactions to displace it from the origin deposit. Once complete you re-enter the funds into ligament purchases such as luxury purchases and financial investments. So why are the banks in