If you consider a tax haven of money, one of the critical aspects is data is hard to find, there are estimates but no one really knows for certain because then people might have to do something about the number. Generally in official ideas the number is always lower than reality and to the critics of the system, the number is always higher than reality. Then a crisis happens and the truth slowly comes to the forefront.
In an article by Oliver Hirt and Brennan Hughes Neghaiwi of Reuters, the Swiss banks hold up to $213 billion of Russia wealth. When the western world imposed sanctions on Russian wealth, few expected the Swiss or any jurisdiction that holds tax free assets to reveal or put holds on the money inside their vaults. However the Swiss Bankers Association (SBA) estimated the banks holds $213 billion of Russian client money in offshore accounts.
The SBA stressed this was small compared to the overall assets held in Switzerland. The share is in the low single digit percentage range (around 5%) of the total cross border assets deposited in Swiss banks.
Linking to dividend paying stocks, in every crisis new information is released because the other side has its estimates. The company has to be closer to the truth, not the accepted wisdom because the truth eventually comes out. If the company is not giving the truth, others wonder about the numbers and ask journalists questions so the truth does come out. When a crisis happens and the numbers you expect from your investments are not the same or the expected, it is time to find alternatives.
There are more questions than answers, till the next time – to raising questions.