Trump policies amplify banking headaches of Swiss Abroad

Counting the cost: some Swiss abroad can find it tough to maintain a Swiss bank account. Keystone / Christian Beutler

PostFinance is shutting down accounts of Swiss citizens in Cuba. This is just one example of the banking challenges confronted by the Swiss Abroad. The tightened restrictions on overseas accounts are also linked to the policies of US President Donald Trump.

“We are forced to terminate our business relationship with you and close the associated accounts and services,” reads a letter to Sandra S., a Swiss citizen living in Cuba, from PostFinance, the financial services arm of the Swiss post office.

The letter further states that she had two weeks to find a new bank. When Sandra S. tried to withdraw money, her account was already locked. Finding a new bank from abroad within such a short period of time is impossible, Swiss public television SRFExternal link reports.

Choosing the right bank account has long been a concern for Swiss expats. Which bank is suitable for the Swiss Abroad? Under what conditions can they maintain an account, and how much does it cost?

PostFinance is currently closing the accounts of a Swiss citizens living in Cuba within two weeks. According to SRFExternal link, this is the bank’s reaction to tightened US sanctions and threats from US President Donald Trump.

Swiss expats pay higher fees at Swiss banks than citizens living in Switzerland. Find an overview of prices here:

Fewer than a dozen business relationships affected

Sandra S. is caught off guard by the sudden closure of her account. A regular customer of the bank for many years, she lives in Cuba and, as a Swiss Abroad, pays higher banking fees. Now, she is left wondering how she will receive her old-age state pension in the future.

SRF research shows that Sandra S. is not an isolated case. On the contrary, PostFinance is systematically shutting down accounts of customers with ties to Cuba. However, the reason why the accounts are closed with such short notice remains unclear.

As of the end of 2024, 212 Swiss citizens were registered in Cuba. When asked by the AWP news agency, PostFinance stated that fewer than a dozen business relationships were affected.

However, PostFinance refrained from explaining why the accounts were being closed with such short notice. This leads some to believe that Trump’s long arm extends all the way to PostFinance’s headquarters in Bern.

Is there a Trump effect at play? Are Swiss banks becoming increasingly wary of managing bank accounts for Swiss expats? When asked, most banks fail to provide concrete answers and only vaguely refer to “risk considerations” or “compliance strategies”.

International sanctions are subject to constant change and are not a rigid construct, PostFinance also stated. Every bank must constantly reassess how to deal with the resulting risks.

PostFinance has no service obligations to Swiss expats

Major Swiss banks suspended payment transactions with Cuba years ago due to pressure from the US. PostFinance remained the only larger institution that continued such payments.

PostFinance says that the decades-old sanctions against Cuba have been repeatedly adjusted over the years, and that the company had regularly revised its internal policy in the past.

In 2019, the Swiss government, which owns PostFinance, clarified that the financial services provider’s universal service obligation is limited to domestic payments. Nonetheless, it continues to express interest in providing payment services to Swiss citizens living abroad.

The government’s strategic goals for the Swiss post office state that these services should be provided “as long as it is possible with reasonable effort and does not entail any legal or reputational risks”.

If maintaining an account with a traditional bank can be tricky for Swiss emigrants, could new online banks be an alternative?

Swiss Abroad are constantly faced with problems

A quick scroll through the fora of the Swiss Abroad community reveals that bank accounts are once again a hot topic. Which financial institution offers the best terms? Where can Swiss expats still open a bank account? And what to do, if their account is suddenly closed?

Recently, a Swiss citizen in Australia was asked by Zurich Cantonal Bank (ZKB) to close both her vested benefits as well as her third pillar retirement savings account. The bank gave her just over six weeks to transfer her funds. In her desperation, she turned to the Swiss Abroad Facebook Community for help from fellow expats.

Swiss Abroad Council member and board member of the Organisation of the Swiss Abroad (OSA), Carmen Trochsler, took the case on and within 24 hours clarified the internal misunderstanding at ZKB.

“The person in question can keep her accounts,“ Trochsler reports. “This case is a prime example of how delegates of the Swiss Abroad Council can bring about positive results and resolve issues through their knowledge and contacts – both abroad and in Switzerland.”

Geopolitical tensions and their impact on Swiss banks

US lawyer Tomislav Joksimovic is a partner at the Swiss law firm 5Gambit Disputes. In an interview with SWI swissinfo.ch, the US specialist for Swiss banks stated that Swiss financial institutions were currently becoming increasingly wary.

“This is especially true in the light of the current geopolitical volatility which is driven by the US,” Joksimovic explains. However, it depends on the country where the Swiss expats are based. Maintaining a bank account in the European Union is less controversial than in a country sanctioned by the US. “One could say: the higher the tensions between the US and the country in question, the greater the sensitivity,” the expert explains. In such cases, the bank’s risk profile changes accordingly.

This also explains why tensions around Swiss bank accounts remain high. The shift from a Democratic to a Republican US administration has only changed the source of these tensions. Under presidents Barack Obama and Joe Biden, it was the focus on tax evasion that kept Swiss banks on edge.

Now the Trump administration is applying threats and power plays to try and get other countries to align with US-friendly policies. This makes the banks nervous, as Trump could easily use them to enforce his agenda.

Wanted: a bank that accepts customers from North America

The Organisation of the Swiss Abroad (OSA) has made it a priorityExternal link to find solutions to banking issues faced by Swiss expats. Thanks to partnerships with Geneva Cantonal Bank (BCGE) and ZKB, OSA could secure two banks willing to offer banking solutions to the Swiss Abroad.

On its websiteExternal link, ZKB says: “You can open an account with any amount of funds, no matter where you live”. The bank confirmed this in response to an inquiry from SWI swissinfo.ch.

There are still exceptions to the rule though: “For risk considerations and business policy reasons, no services are provided to individuals who reside in certain countries,” the bank writes. Additionally, it currently does not serve clients based in Cuba.

Other banks are also willing to establish a banking relationship with the Swiss Abroad, depending on their country of residence.

However, Swiss citizens in the US face an even more difficult situation as it is almost impossible for them to maintain a Swiss bank account – unless they have significant assets that require management.

As reported during the recent meeting of the Swiss Abroad Council, a key legislative goal of the OSA is to continue talks with Swiss banks to find a bank that will accept Swiss citizens living in North America as clients.

Edited and with contributions by Balz Rigendinger; adapted
from German by Billi Bierling/ds