Even though pressure from foreign countries has forced Switzerland to change its banking secrecy laws, the Swiss private banking sector is doing well. Clients value Switzerland for its security, political stability and stable currency, and have continued to flow new money there over the past two years. Tax evasion is not as important as is sometimes believed; much of the money coming in comes from low-tax regions, like the Middle East and Asia. While the very rich will likely see their wealth increase significantly in the years to come, the future looks bright for Swiss banks. But it also hurts the United States, as the super rich avoid taxes by going to Swiss banks. Switzerland plays the role of savior to many wealthy American citizens who avoid paying taxes. When you are rich and don't want to pay taxes, how about going to a Swiss bank near you. The Swiss have one of the most secretive banking systems in the world. The cause and effect of banks in Switzerland are positive for the person and the country of Switzerland, but negative for people who lose in other countries by using their banks and avoiding paying taxes. Switzerland was founded in 1291, but was officially considered a country in 1977. However, it did not become an official member of the United Nations until 2002. Formally considered a confederation, but with a structure similar to that of a federal republic. Switzerland has one of the most competitive economies in the world according to https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html. The unemployment rate is among the lowest in the world and the active population includes many highly qualified workers. In 1934, Switzerland passed the Federal Banking Act, imposing criminal penalties on bankers if they violated their p...... middle of paper ...... accounts to avoid taxes. The Swiss Federal Council. (May 29, 2013). The Swiss government lifts banking secrecy rules. CNNMargent. Retrieved March 30, 2014, from http://money.cnn.com/2013/05/29/news/economy/swiss-bank-secrecy Don't ask, don't tell. (February 11, 2012). The economist. Accessed March 30, 2014, from http://www.economist.com/node/21547229 Ladd, RS (Summer 2011). The Swiss miss: the future of banking secrecy laws in light of recent changes in the Swiss system and international attitudes. Transnational Law and Contemporary Issues, 20(2), 539+. Retrieved from http://go.galegroup.com.db19.linccweb.org/ps/i.do?id=GALE%7CA264482429&v=2.1&u=lincclin_pbcc&it=r&p=AONE&sw=w&asid=8079c8c57bf69f6fc300b491ae1cf020Suisse. (nd). Central Intelligence Agency. Accessed March 27, 2014, from https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html