Much has been said and written about that Cyprus story, one great thing about it is that they will finally strengthen their anti money laundering policy.
The problem is, if you took 30% of your wealthy clients account as per someone else’s decision, you are lost anyway.
Chances are these wealthy Russians everybody is talking about will try to move their assets to a truly stable, reliable and strong financial hub with political independence and stability, as well as a strong currency; something like Switzerland or Singapore. And if these fortunes were made legally, then they will be more than welcome.
So will the High Net Worth Latin Americans who are notorious for holding an account in their favorite holiday/shopping destination: Miami. The soon to be signed agreements between the USA and the continent’s major countries will have them loose the confidentiality that is almost vital to many of them.
Switzerland is not a tax heaven anymore. Good. Now they can focus on being a safe heaven, and this never goes out of style. At a moment when some considered that the good days of the Swiss wealth management industry were over, the recent European decision proves just the opposite.
The last banker standing will therefore have to learn Spanish, Portuguese and Russian, in order to be able to service his future clients.