Euro to Swiss Franc
Yesterday, I converted 215 euros that had been sitting in a drawer for a long time. Given the ongoing depreciation of the euro, I couldn't afford to delay exchanging them for Swiss francs. The euro has lost nearly half of its value compared to the Swiss franc since its creation and is expected to continue to decline. Fortunately, there are no longer any minimum exchange rate restrictions.
Source: Google Finance
KYC Threshold at €200
I went to the post office to exchange my euros, regardless of the exchange rate. I was very surprised when the postal clerk asked for my ID card and made a photocopy of it. I expressed my surprise and inquired about the reason for this procedure. She told me that it is mandatory for transactions exceeding 200 euros. Since when? Several years ago. The reason for this requirement? That's the law.
I was a bit shocked. Only 200 euros!
In one of the world's most expensive countries, such a sum no longer buys much. In Switzerland, it's the cost of a three-person meal at a restaurant. It is a day's gross wage for a low-income worker.
The additional work involved, as well as the resources and energy expended, must be accounted for, and this has an adverse impact on the exchange rate.
Swiss Legislation
The legislation mentioned by the postal clerk is the federal law aimed at combatting money laundering and the financing of terrorism. Its objective is to ensure that the origin and usage of this small sum are neither illegal nor evading taxation. It's up to compel financial institutions to collect information about their clients and their transactions.
I totally support the purpose of this law. No one should break the law by evading taxes or supporting a terrorist organization. Cryptocurrency is an alternative investment avenue, and its users must adhere to the tax laws of their respective countries. Fortunately, in Switzerland, similar to stocks, cryptocurrency holdings are to be declared as wealth, and transactions are only taxable for professionals.
Threats Of The Law
Data Security
It is imperative to guarantee the security, confidentiality, and integrity of the collected data against criminal, commercial, or political misuse. Platforms like Facebook know as much about us in a few likes as a close friend knows about our preferences, habits, and political leanings. The commercial and political potential of such data is immense.
There will inevitably be data breaches, data loss, or data corruption. Lowering the verification threshold increases the risks related to data security and the number of individuals affected.
Missed Targets
Corporations have elevated tax evasion to an art form, calling it tax optimization. This law has simply made this practice more sophisticated.
While this legislation may deter terrorist organizations, they may need to explore more diversified means of financing, such as being funded to fight in Syria or by the army fleeing while abandoning their weapons.
In the end, the only transactions effectively tracked are those involving small sums by individual taxpayers. Some ordinary people also engage in tax evasion, sometimes unknowingly. While each instance may involve a small sum, when multiplied by the number of small-scale tax evaders, the cumulative amount becomes significant. Every profit, no matter how small, matters.
Classification As Terrorism
One potential issue with this law lies in how the state interprets the definition of terrorism, which can be applied differently over time and for political purposes, to constrain the population or silence opposition. The legality of an action is contingent on the prevailing laws, norms, and societal standards, which can evolve and render the action illegal in the future.
Corruption
Engaging with crypto has shed light on the abundance of money circulation on Earth and raised questions about the state's resemblance to a mafia organization.
COVID has exposed that governments have breached the law and treated citizens as cattle. It has revealed political corruption, ethical lapses among medical professionals and scientists, corporate control over governments breaking any law for profit, and the prevalence of ignorance, obedience, and authoritarianism among individuals.
Freedom
The thresholds for KYC procedures are so low that they encompass everyday transactions, putting personal privacy and freedom of trade at risk.
People see crypto as something criminal, but the difference with banks is that everyone is bank and everyone can see who sent what to who.
I stuidied a bit of the swiss anti-taxe evasion and some other law used in swiss. Most of these law even with low minimum have been created after some shady affaires where swiss bankers would accecpt large cash euros to escape taxes. 200€ minimum, is probably to prevent injection of illegal funds in swiss economy.
So low, it's only to track citizen everyday transaction. Banksters and greatest tax evaders are chill. !BEER
Yes, its low but in fact the reason such things are there are good reasons too. In the 70's rich ilitalian guys would bring brief case full of cash next to the border (prbly not clean cash) then some swiss bankers took the brief cas and brought i back to swiss, no kyc nor anything they could just change the EURO to CHF and deposit in the bank and launder millions.
Source : https://www.ticino.ch/en/about-us/ett-storico/anni-70/scandalo-chiasso.html,https://www.cdt.ch/news/economia/quando-il-credito-svizzero-fece-scandalo-in-ticino-311540
Having set it at 200 chf or equivalent is a bit low though, but it must be to prenvent from launder of stolen cash or something like that. I might look deeper into it since it's a pretty interesting subject.
Is the 200.- minimum everywhere ?
I mean 200.- are more valuable in the ticino than in zürich so maybe it depends where too.
"Banksters and greatest tax evaders are chill.", depending of who yes. In swiss it became harder and harder. I mean laundering became hard. Tax evasion is still simple, since most of the way to lower tax aren't illegal just some tax things. Which i think i completly dumb. Having multi-billion dollard company paying million in taxes instead of billion.
About the tracking part i don't think here we are in the most tracking country, too much liberty kill liberty and some track need to be done to prevent from some criminal activities. Compex subject !LOLZ
I understand how transferring, withdrawing or depositing money can be money laundering, but not how converting could be.
The low amount requirement is from European Union. I hope Switzerland will never adhere. !PIZZA
If it's from EU, it might have another reason.
Because 200 Euro might not be a lot for us but in some porer country in the EU even 200 Euro can be a lot. Example the poorest Moldova GDP per Adult in 2021: $4,440source insider monkey, with such low revenue/money wealth crime amount are lower so control need to be set lower.
Or something like that.
About the how converting can be laundering, i'm not very sure but basically you can (i think) send as an example 200euro from your BNP account and receive 200.- in your ubs account. If somehow you managed to get the 200 euro illegally the change Buro made it clean.
hmmm, not very clear explanation. As i said i should look deeper into it before saying anything so i don't say shit haha.
There should be a lot of ways to launder money. I'm not well informed about that.
200€ is a year salary in Burundi. I consider myself as lucky to be born in Switzerland. !BBH
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