For the discerning American tax evader, there once was no more desirable location than Switzerland to stash cash.
Swiss banks were prized for their ironclad secrecy, and Swiss bankers for their impeccable English and reassuring manner. The country is easily accessible by air. The skiing is terrific.
But a long-running campaign by United States investigators to crack the famously secretive system -- an effort that will soon lead to additional fines and disclosures of American account holders -- has significantly eroded Switzerland's appeal, offshore experts say. More than ever, American tax evaders are choosing less familiar and potentially riskier locales to stash their money.
"Now you are looking at a 15-hour plane ride followed by a conversation with a guy with a parrot on his shoulder," said Jeffrey Neiman, a former federal prosecutor who worked on the first criminal case brought by U.S. authorities against a Swiss bank for aiding tax dodgers.
John Christensen, the director of the Tax Justice Network, said that tax advisers are promoting Singapore, Hong Kong and the Cayman Islands as alternatives to Switzerland. Deposits in these countries have increased significantly in recent years, though there is no firm data on growth.