Numbered bank accounts are

bank accounts A bank account is a financial account maintained by a bank or other financial institution in which the financial transactions between the bank and a customer are recorded. Each financial institution sets the terms and conditions for each type ...

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, 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. Anonymity may be created unintentionally through the loss of identifying information due to the passage of time or a destructive event, or intentionally if a person cho ...

for European clients seeking to avoid paying

World War I World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...

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 A code name, codename, call sign, or cryptonym is a code word or name used, sometimes clandestinely, to refer to another name, word, project, or person. Code names are often used for military purposes, or in espionage. They may also be used in ...

such as "

Cardinal Cardinal or The Cardinal most commonly refers to * Cardinalidae, a family of North and South American birds **''Cardinalis'', genus of three species in the family Cardinalidae ***Northern cardinal, ''Cardinalis cardinalis'', the common cardinal of ...

", "

Octopussy ''Octopussy'' is a 1983 spy film and the thirteenth in the List of James Bond films, ''James Bond'' series produced by Eon Productions. It is the sixth to star Roger Moore as the Secret Intelligence Service, MI6 agent James Bond filmography, J ...

" or "

Cello The violoncello ( , ), commonly abbreviated as cello ( ), is a middle pitched bowed (sometimes pizzicato, plucked and occasionally col legno, hit) string instrument of the violin family. Its four strings are usually intonation (music), tuned i ...

" 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 continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and Asia to the east ...

Asia Asia ( , ) is the largest continent in the world by both land area and population. It covers an area of more than 44 million square kilometres, about 30% of Earth's total land area and 8% of Earth's total surface area. The continent, which ...

, and

the Americas The Americas, sometimes collectively called America, are a landmass comprising the totality of North America and South America.'' Webster's New World College Dictionary'', 2010 by Wiley Publishing, Inc., Cleveland, Ohio. When viewed as a sin ...

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 Switzerland, officially the Swiss Confederation, is a landlocked country located in west-central Europe. It is bordered by Italy to the south, France to the west, Germany to the north, and Austria and Liechtenstein to the east. Switzerland ...

, the

European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...

, the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

, 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 mandatory financial charge or levy imposed on an individual or legal person, legal entity by a governmental organization to support government spending and public expenditures collectively or to Pigouvian tax, regulate and reduce nega ...

. 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 used by an organisation or person to verify that an individual is who they claim to be, and check their past record to confirm education, employment history, and other activities, and for a criminal record. The fr ...

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