Bangladeshi nationals have been withdrawing funds from Swiss banks at an unprecedented rate, according to the latest report from the Swiss National Bank (SNB).

The annual report, released on June 20, indicates a significant decrease in the deposits of Bangladeshis with Swiss banks, dropping from 55 million Swiss francs in 2022 to 18 million francs in 2023. This represents a striking 67 percent decline within a year.

The trend of rapid withdrawals has been ongoing for the past few years. In 2021, Bangladeshi deposits in Swiss banks stood at 872 million Swiss francs. This amount plummeted to 55 million francs in 2022, continuing to decline in 2023. At an exchange rate of Tk 131 per franc, the 2023 deposits amount to approximately Tk 2.38 billion.

Swiss central bank data shows that the total deposits of Bangladeshis in Swiss banks encompass various types of funds, including personal, bank, and other enterprise deposits.

Swiss banks have long been a favored repository for wealth, accrued both legally and illegally, due to Switzerland’s stringent privacy laws. These laws ensure that banks are not required to disclose customer information, protecting consumer privacy rigorously.

Despite this, the shift away from Swiss banks has been noticeable. Increasing privacy concerns and criticism over the handling of illicit funds have driven many to relocate their assets to other countries.

In Bangladesh, there has been a notable crackdown on unaccounted-for wealth alongside fiscal amnesty measures aimed at integrating black money into the mainstream economy amid financial strain. These domestic measures might be influencing the trend of funds being withdrawn from Swiss banks.

Similarly, Indian nationals and firms have also significantly reduced their deposits in Swiss banks. According to the SNB, Indian funds in Swiss banks fell by 70 percent in 2023, amounting to 1.04 billion Swiss francs.