A brief review of the history of unclaimed assets in Switzerland. There have been a number of important developments in the treatment of unclaimed assets in Switzerland, influenced by historical events, financial scandals and legislative changes. Here is a brief overview of the main stages and contexts surrounding unclaimed assets in Switzerland:
1. Origins and early 20th century – Banking confidentiality: Switzerland has a long tradition of banking confidentiality, which has led to the accumulation of many unclaimed bank accounts. – Use of Swiss banks: From the beginning of the 20th century, Swiss banks were perceived as safe places for deposits, due to Swiss neutrality and the stability of the banking system.
2. World War II and post-war – Capital flight: During the Second World War, many people, particularly persecuted Jews, transferred their assets to Switzerland to protect them. – Unclaimed accounts: After the war, many account holders did not return to claim their funds, leaving accounts unclaimed and unclaimed.
3. 1990s: International pressure and the Jewish escheat scandal – International pressure: In the 1990s, under international pressure, particularly from the USA and Jewish organizations, Switzerland faced criticism over unclaimed accounts of Holocaust victims. – Washington Accords: In 1995, Swiss banks agreed to trace and return the assets of Holocaust victims. A special fund was set up to compensate survivors and heirs. – Bergier Report: The Bergier Commission was set up to investigate Switzerland’s role during the war, including its handling of unclaimed accounts. – 1995 NARILO Guidelines: These guidelines, which were approved by the Swiss Financial Market Supervisory Authority (FINMA), govern in general terms what should be done with such assets.
4. 2014 : Law on escheated accounts – New legislation: In 2015, Switzerland strengthened its legislation on escheated accounts. The Banking Act and a revision of the Banking Act underpinned the NARILO guidelines. – Publication period: 60 years after the last contact with the customer, these assets are published on the https://www.dormantaccounts.ch website if the rightful owner could not be traced. This publication also applies to all relationships involving amounts in excess of CHF 500, or where the value is unknown (e.g. safe-deposit boxes). – Transfer to the Confederation: If no entitled person claims the assets within the stipulated period, they are transferred by the banks to the Confederation (i.e. the Federal Finance Administration). The time limit is one year from publication; for old assets that have been out of contact for more than fifty years when the new regulations come into force, the time limit is five years.
5. Recent developments and international compliance – 2022: Update of the NARILO directives: This new version does not introduce any fundamental changes to the existing text. It simply takes account of the change of provider of the system for registering and publishing contactless assets, and adapts the rules for handling these assets in the light of experience gained by banks since 2015. – Compliance with international standards: Switzerland continues to adjust its laws and practices to comply with international transparency and anti-money laundering standards. – Data protection: Swiss legislation, aligned with the European RGPD, ensures that the processing of data from dormant accounts complies with the principles of confidentiality and security.
To conclude: Switzerland’s history of unclaimed assets is closely linked to its historic role as an international financial center. Today, Swiss banks must publish information on unclaimed accounts and follow strict procedures to ensure that escheated assets are managed appropriately and ethically.
