America's super-rich seek refuge in Swiss "bunkers" amid uncertain storm

Capital flows across the Atlantic

In recent months, Swiss banks and wealth management firms have seen a significant increase in interest and new account openings from high-net-worth individuals (HNWIs) in the United States. The phenomenon is not entirely new, but its intensity and scale are attracting particular attention from the international financial community.

Hundreds of millions of dollars are believed to be being moved out of US accounts to safer havens, with Switzerland emerging as a top destination, according to industry experts.

Robert Paul, co-head of private clients at London and Capital, a UK-based asset manager, said of the scale of the inflow: “These are very large sums of money. In the last three to four weeks, we have processed five cases of $40 million, $30 million, $30 million, $100 million and $50 million.” Paul predicted that the trend would continue, and even get stronger.

The increase was confirmed by several other institutions. Private bank Pictet said it had seen a “significant increase” in inquiries from US clients through its Switzerland-based unit Pictet North America Advisors.

Pierre Gabris, CEO of Alpen Partners International, a financial advisory firm in Switzerland, describes this phenomenon as occurring in waves, linked to major political and economic events in the US: "When former President Barack Obama was elected, we saw a big wave. Then Covid-19 created another wave. And now, the tariff policies and the return of the Trump administration are creating a new wave."

Judi Galst, managing director of private banking at Henley & Partners in New York, has also noticed the trend. She told The Telegraph that about a quarter of her clients are looking into opening accounts in Switzerland. “I hear a lot of people talking about Switzerland and Liechtenstein,” Galst said, citing a Swiss banker who said they had opened 12 accounts for Americans in just two weeks.

It is worth noting that this money transfer is not limited to Switzerland. Some US investors are also looking at other offshore financial centres such as Jersey and Guernsey, two islands in the English Channel, as part of a broader diversification strategy.

This phenomenon is being called by observers as part of a strategy to “de-Americanize” investment portfolios. Robert Frank, a leading journalist on the US wealthy, notes that more and more high-net-worth Americans are taking this step. They realize the risks of concentrating all their assets in a single country and currency, especially in the current uncertain climate.

Rising uncertainty and fears of possible restrictions on foreign cash flows are causing the wealthy to move hundreds of millions of dollars out of the US (Photo: WSJ).

The driving force behind the wave of asset movements

So what are the key factors driving America’s super-rich to shift a significant portion of their wealth to Switzerland and other international financial centers? Experts point to a complex mix of economic concerns, political uncertainty and a strategic desire for diversification.

Macroeconomic concerns

Concerns about a looming recession in the United States are a major driver. In addition, many wealthy investors have expressed concerns about the long-term health of the dollar, believing that the growing burden of U.S. debt could weaken the currency in the future.

Therefore, moving part of the assets into stronger and more stable currencies, such as the Swiss Franc, is seen as a reasonable precautionary move.

Political and policy uncertainty under Trump

The presence and potential policies of the Trump administration are a factor that cannot be ignored. Many in the elite are concerned about “the uncertainty of the Trump administration,” as Josh Matthews, co-founder of asset management firm Maseco, put it, and saw a similar trend during the 2008 financial crisis. Specifically, there is a fear of potential capital controls or restrictions on moving money out of the country.

People are scared about capital controls and restrictions on money transfers, and the reason the wave has been so strong in the last four weeks is because the government has been changing its position so quickly, Robert Paul stressed.

The topic has become a “regular topic at dinner parties for the super-rich,” he said. Others are concerned about the weakening of the rule of law in the United States, prompting them to seek the stability and reliability of the Swiss legal system.

The charm of Switzerland

The country has long been known for its political neutrality, stable economy, strong banking system and high-value currency, which are attractive to investors seeking safety and long-term capital preservation.

In addition, Switzerland is also the world's leading center for refining and storing physical gold, attracting investors who want to own this precious metal as a traditional safe haven.

Diversification strategy and "plan B"

Beyond immediate concerns, opening an offshore account is part of a long-term wealth management strategy. As Pierre Gabris notes, many Americans realize that “100% of their portfolio is in dollars” and think, “Maybe I should diversify.” Judi Galst also confirms that many of her clients believe that “keeping all their assets in the U.S. is no longer the optimal choice.”

For some, it's also a preparation for "plan B." They're not just transferring money, they're also looking into investment immigration programs, like New Zealand's visa program, or seeking residency and second citizenship in Europe, with plans to buy property there.

UBS - the secretive Swiss bank favored by America's super-rich (Photo: Getty).

Legal framework, operational reality and future

While secret Swiss bank accounts have historically been associated with tax evasion, the reality today is very different. Opening a Swiss bank account for US citizens is now strictly regulated, transparent and in strict compliance with the laws of both countries.

The US Foreign Account Tax Compliance Act (FATCA), which was enacted to combat tax evasion by requiring foreign financial institutions to report on US citizens’ accounts, has changed the game. Technically, US citizens can no longer just walk into any Swiss bank and open an account as they once could. But the door is not completely closed.

The solution lies with asset management companies or financial advisors in Switzerland that are registered with the US Securities and Exchange Commission (SEC). These organizations are legally licensed to manage assets and open accounts for US clients, as long as all tax reporting procedures required by FATCA and the US Internal Revenue Service (IRS) are fully complied with.

Major US banks, while not directly opening Swiss accounts, often have affiliates that are SEC-registered Swiss companies that serve this need for their clients. Vontobel SFA, considered the largest SEC-registered Swiss bank serving US clients, and Pictet North America Advisors are prime examples of this model of operation.

Therefore, opening an account in Switzerland today is a legal process, requiring transparency and full documentation, far from the shady image it once had. It reflects a legitimate need for diversification and risk management rather than an intention to hide assets.

But there is another perspective to consider. An anonymous executive at a small US asset management firm said the increase was not necessarily a “massive wave” as the media has portrayed it. Instead, it could be because Swiss financial institutions have become more adept at handling the complex tax procedures associated with US clients over the years, making account opening easier and more popular.

While explanations may vary in intensity, there is no denying the growing trend among wealthy Americans to seek financial solutions beyond national borders.

Faced with an uncertain economic and political future, diversifying your portfolio to the stability of financial centers like Switzerland is becoming an increasingly popular wealth management strategy among the American elite, a clear expression of prudence and proactive safety-seeking in a volatile world.

Source: https://dantri.com.vn/kinh-doanh/gioi-sieu-giau-my-tim-den-ham-tru-an-thuy-si-giua-bao-bat-dinh-20250420082844484.htm