Numbered bank accounts are bank accounts wherein the identity of the holder is replaced with a multi-digit number known only to the client and selected private bankers. Although these accounts do add another layer of

banking secrecy Banking secrecy, alternately known as financial privacy, banking discretion, or bank safety,Guex (2000), p. 240 is a conditional agreement between a bank and its clients that all foregoing activities remain secure, confidential, and private. Mos ...

, they are not completely anonymous as the name of the client is still recorded by the bank and is subject to limited, warranted disclosure. During the 1910s, bankers from Switzerland created numbered bank accounts to add a layer of

anonymity Anonymity describes situations where the acting person's identity is unknown. Some writers have argued that namelessness, though technically correct, does not capture what is more centrally at stake in contexts of anonymity. The important idea he ...

for European clients seeking to avoid paying

World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...

taxes. With the passage of the Swiss Banking Law of 1934, this practice proliferated across the banking industry in Switzerland. Some Swiss banks supplement the number with a code name such as " Cardinal", "

Octopussy ''Octopussy'' is a 1983 spy film and the thirteenth in the ''James Bond'' series produced by Eon Productions. It is the sixth to star Roger Moore as the MI6 agent James Bond. It was directed by John Glen and the screenplay was written by G ...

" or "

Cello The cello ( ; plural ''celli'' or ''cellos'') or violoncello ( ; ) is a Bow (music), bowed (sometimes pizzicato, plucked and occasionally col legno, hit) string instrument of the violin family. Its four strings are usually intonation (music), t ...

" as an alternative manner to identify the client. However, to open this type of account in Switzerland, clients must pass a multi-stage clearance procedure and prove to the bank the lawful origins of their assets. Banking institutions that have adopted this practice in

Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...

Asia Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an area ...

, and

the Americas The Americas, which are sometimes collectively called America, are a landmass comprising the totality of North and South America. The Americas make up most of the land in Earth's Western Hemisphere and comprise the New World. Along with th ...

also require clients to undergo stringent vetting and provide the identity of the beneficial owner. The usage of fake names to open these accounts is prohibited in

Switzerland ). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...

, the

European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...

, the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

, and other off-shore financial centers. Many sovereign state governments have outlawed the usage of these accounts as they are commonly associated with a desire by the account holder to either minimize governmental scrutiny or avoid

taxation A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal person, legal entity) by a governmental organization in order to fund government spending and various public expenditures (regiona ...

. Most regulations governing the usage of numbered bank accounts require that the holder signs a document and undergoes a

background check A background check is a process a person or company uses to verify that an individual is who they claim to be, and this provides an opportunity to check and confirm the validity of someone's criminal record, education, employment history, and oth ...

that confirms who they are and a connection to the account. Despite the regulations, numbered bank accounts by their very nature are more private than normal bank accounts. In Switzerland, for example, bankers are outlawed from disclosing whether or not an account is numbered to any governmental agency unless proof of deliberate fraud is established, not merely the non-reporting of assets in order to avoid taxation.

References

{{Reflist, colwidth=40em Bank account Privacy Security

See also

References