Montana Orders Up a Rough Draft of Plan To Offer Swiss-Style Secret

Montana took another step toward creating a haven for Swiss-style banking last week as state officials ordered an informal draft be prepared outlining the concept.

Representatives from the U.S. Justice and Treasury departments and the Montana Bankers Association were among 25 people who met in Billings to discuss introducing secret, numbered accounts to Big Sky Country.

"There's optimism, with a lot of hedging," said Stephen Maly, a Montana legislative research analyst.

"It looks as if there is a niche that is marketable and legally do-able. The task is finding a way to draft it."

Mr. Maly said the draft will be presented at a March 8 meeting in Helena, where a decision will likely be made to either proceed or drop the matter.

Three topics dominated the Billings' meeting: the commercial viability of the enterprise, concerns of federal regulatory and law enforcement agencies, and what the creation of such a haven would mean for the state.

Swiss-style banks are noted for confidentiality and anonymity. The banks can set up accounts whose ownership is veiled both to outsiders and most employees. Identified only by numbers, these accounts are often further cloaked through offshore transactions.

Robert Svoboda, a retired California banker who is helping push the concept, said he believes the state can make a great deal of money by embracing the opportunity.

"I'm reasonably encouraged, but there's still a lot more talking to do," he said. "What I noticed was that everyone is pulling for ways to make it happen. The Federal officials were there not to say we couldn't do it, but to point out obstacles that have to be overcome."

Among hurdles are provisions in the Bank Secrecy Act, which restrict the amount of confidentiality banks can offer depositors. There are also fears that such accounts would be used to launder money and hide ill-gotten wealth.

The numbered accounts would most likely be available only to foreigners.

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