break the bank [Breaking,the,bank]

　　The current Swiss president and finance minster delivered on February 22 what could be the final blow to the secret, untaxed bank accounts that have been the country’s hallmark. The regulatory plan that Eveline Widmer-Schlumpf unveiled would help ensure that foreign account holders pay taxes in their home countries and accept the liability if they do not. Such a move would have been unthinkable just four years ago, but pressure from the US and European countries looks set to drive through the regulations, despite opposition from the financial sector.
　　The announcement may seem a world away from China, but it could change the way many rich Chinese invest. Due to strict controls on taking money out of China, major Chinese investments abroad are often done illicitly and may not qualify as “clean money” under Swiss regulations.
　　“It’s very difficult to predict what the future landscape of Switzerland is going to be,” said Yves Klein, a partner at Swiss law firm Monfrini, Crettol & Partners. Klein said the question is whether this transparency will extend only to depositors from certain countries – like the US, Germany, France and the UK – or to taxpayers around the world.
　　Secretive by nature
　　Because of the country’s predilection to secrecy, it is impossible to know how much Chinese money is under management in Switzerland. But industry watchers say a significant number of rich Chinese hold accounts in Switzerland.
　　Tracking outflows to Switzerland is also difficult, as strict capital controls often leave rich Chinese only illegal means to take money out of the country. Chinese are only allowed to transfer US$50,000 abroad each year. They can also make outbound investments with a Chinese bank licensed under the Qualified Domestic Institutional Investor (QDII) program, which gives some banks a license and quota to invest abroad. Individual Chinese investors can buy into related funds, but the program remains small and tightly controlled.
　　Despite these restrictions, there is evidence that money is flowing out of China, even if it is unclear where it is goes or how much is legal. A report issued late last year by the Hurun Research Institute and Bank of China indicates that about one-third of Chinese with over RMB10 million (US$1.58 million) have overseas investments, and another 30% are consid- ering investing abroad in the next three years.
　　The reason many rich Chinese invest abroad is apparent: According to the Hurun and Bank of China report, nearly half said they wanted to move out of China to gain better education for their children, a higher standard of living and more security for their assets.