The private banker naturally tries to minimise the taxes suffered by the clients. Bond interest has gradually been freed from withholding tax - following the success of the Eurobond market. But tax factors are often overridden by investment considerations. Money-laundering is not a great practical problem, but it is nevertheless a considerable risk. It seems that clients with illegal funds tend to avoid private bankers.
Private bankers offer trusts and foundations, where such vehicles appear appropriate.
Swiss banking secrecy is still in existence, but it is a mistake to think that it protects criminals. A Swiss bank now requires to know the identity of the owner of every account. If there is an act which constitutes an offence both in Switzerland and in a foreign country, the Swiss Court will order disclosure of information to the foreign court. A Field Crime is producing larger profits, society has become more critical and drug-dealing has proliferated. Money-laundering has become a most serious problem.