Foreign Perspectives

I’m reliably informed that the place to go locally to launder some money is a small bank branch in a town just over the border.

Or at least that’s where my informant banks his cash.

The only problem with his choice is that he’s in France and the bank is in Spain. No problem with the currency but what he’s not taken into account is that all European countries have a co-operation agreement in place which means that this bank account will be reported automatically to the French authorities.

I suspect that it will take quite a long time before that attitude of money becoming invisible when you use a bank just over the border changes. It’s been pointless for the Germans to drive over to Luxembourg with a suitcase of cash for quite some time (a very popular pastime apparently).

Anyway, if you’re considering a spot of money laundering, you’ll usually go rather further than just over the border these days.

We received an interesting e-mail from one of the European offices looking after consumer affairs last night.

They’re writing on behalf of a Spanish couple who booked with us last July but who didn’t turn up.

Ordinarly, that would mean we’d have billed them as a no-show but at the time the booking system had a technical problem so we weren’t receiving their reservation e-mails and therefore didn’t know that they were coming. Anyway, net effect was that we didn’t charge them although under the terms of the reservation system we were entitled to.

They’ve gone to this European office with their booking confirmation that has a note of the two nights booked and EUR 98 charge. Except, that it isn’t a change: it’s just a note of what they would have to pay.

The Spanish guy in the European office doesn’t understand that at all. They quoted their credit card number and they’ve a statement with EUR 98 on it, they didn’t get their accommodation (because they went to the wrong place) but he believes that they’ve paid it as do they.

Usually the Spanish are much more Internet-savvy than the French but in this area they’re just as far behind in that they assume that they’ve paid when they quote a credit card number yet it’s only used for a guarantee.

I suspect that it’ll run for a bit as he sent another e-mail this morning threatening to translate everything and sent it to the French consumer protection authorities to demand the refund of this EUR 98 which they’ve not paid.

When I put on my post about opening an American bank as a non-resident, I was amazed at the number of people who checked it out and of those quite a number would like to know how to open a Swiss account.

Opening accounts in both America and Switzerland used to be very easy but with increasing anti-terrorism legislation around the world many banks felt that they could no longer cope with the additional identity checks that the legislation seems to require of them. I say “seems” because it doesn’t really require any more of them than it does of someone living next door to the branch but they generally don’t make a whole lot of money on non-resident accounts anyway so it’s easier for them to use “the law” as an excuse to say no to non-residents.

However, for most “normal” countries all you actually need is a proof of address (ie an electricity or landline phone bill) plus a copy of your passport (usually this must be certified). More obsecure countries sometimes ask for an apostile which is more of a hassle to provide.

For America, Switzerland and the United Kingdom, the only things required are the proof of address and passport. In the case of America, 9/11 has meant that the banks prepared to open an account with minimal hassle has reduced drastically but includes Bank of America, Citibank, HSBC and, the ever-present, e-trade. Aside from e-trade, it’s easier to open an account with one of these banks if you already have an account with them in your own country and you may have one already as Bank of America issues a lot of credit cards in Europe under the MBNA name.

In the case of the UK, it’s easier to open a non-resident account with one of the branches in the offshore islands (Jersey, Guernsey, the Isle of Man or Gibraltar) as they are more accustomed to dealing with non-resident accounts. Don’t worry about that “offshore” tag as those islands banking systems are fully integrated with the mainland.

For Switzerland it’s generally fairly easy though some banks will now refuse non-resident accounts due to the expense of running them whilst others will charge you extra. You cannot open an account with SwissPoste these days, despite numerous websites listing it as a possibility and indeed charging you for the privilege of providing you with the information. The major banks (UBS, Credit Suisse) will still permit non-resident accounts and are unlikely to stop doing so as a large proportion of their client-base is non-resident but now charge around SF 75 per year to maintain the accounts if you’re non-resident. However, if you just want a Swiss account by far the best appears to be via SwissQuote which is a free multi-currency account and offers the option of a debit card too (there’s a charge for the debit card).

What are Certified & Apostilles? To get a document certified, you usually just need to go along to your bank and have them stamp the copy and write “original seen” on it. Sometimes banks ask for it to be certified by a lawyer but usually a bank is sufficient for them. An apostille is a certification that the person doing the original certification is known and what’s asked for usually is a “state-level” apostille. This means, usually, that you need to send off your passport to the department of your home government which deals with international affairs (usually called the State Department but is the Foreign & Commonwealth Office in the UK) who will provide you with an apostilled copy.

If you’re interesting in more details on these options, either subscribe to this category here (international-banking) or check out the information on our Expat Banking site. I’ll be slowly but surely working through the various countries here and on that site, the next being Switzerland and after that probably the offshore British islands.

In an ideal world, a direct non-stop flight is definitely the way to go. One check-in and you’re gone.

However, the growth of discount airlines means that in many cases an indirect route is considerably cheaper and can also offer you a lot more choice in the way of departure times. The downsides are that you generally need to collect your bags and check-in for the second flight and you run the risk of a delay on the first flight knocking you off the second one.

The bags sure are a hassle but if you’re travelling light, it’s a manageable one. Where you do need to be careful about is the time between arriving from the first flight and departing on the second one which needs to allow for delays. You could go with the minimum time between flights in a terminal but are better to add an hour or two (possibly more at peak times) to be sure of making the connection. Actually, at peak times I’d be inclined not to risk it if the second airline is a discount one (“normal” airlines will let you go on the next flight, discount ones will sell you another ticket).

Funnily enough you seem to get these flights cheaper. So, for example, my flight next week is around £70 for a direct non-stop one vs £50 for the two stage one. Not only that, but the £70 flight gets me here after midnight whereas the two stager gets me here for teatime which is always a lot easier on the system.

We don’t get an awful lot of group bookings but, whilst welcome in terms of the money, they’re consistently very disorganised in comparison to either normal bookings or what you’d expect from an “organised” group.

For example, we’ve one group of 12 at the moment who booked nearly two months ago. They’re here for a very popular local festival which tends to fill up all available accommodation for miles around and puts severe pressure on the tourism infrastructure as a consequence of the scale of it. Everyone knows that and therefore books the various components necessary for their trip quite early. This lot? Well, they arrived and wanted to rent a car. There was one 2+2 seater sportscar left in the rental car park so they’ve ended up spending around 6 hours a day ferrying people back and forth to see the festival. Taxis? Nope, all at the festival and refusing to do any short runs at the moment. Meals? Well, it’s hard enough to get 12 people booked in at the best of times so I’m guessing they’re living on pizzas.

The other summer group was that made for a family wedding held locally. They started out with 2 rooms for 3 nights and ended up with a total of 29 room nights. Family weddings are a bit of a nuisance at the best of times as the people rarely eat anywhere except with their family so you often don’t even sell as much as a breakfast and they’re always wanting a discount. Since they’re usually held at the height of summer, we could easily book the rooms with people who’d be taking breakfast and meals and wouldn’t ask for a discount. The bunch this year went even further though as the wedding didn’t go too well and decided that that must have been our fault and that they’d like to get all their money back (this despite us not even knowing that they were here for a wedding ’til they arrived!). Net effect? Well, we’ll be cancelling any reservations in future that look as though they might be for a wedding: it’s just too much hassle for no real reward.