Switzerland

New Documents

Switzerland and Singapore will co-host the first international conference on financial technology, or fintech, titled “Point Zero Forum”, to be held in Zurich from June 21 to 23, 2022.

Switzerland’s Federal Council announced the decision to adopt the EU’s sixth package of sanctions against Russia and Belarus in response to the ongoing military aggression in Ukraine, which introduces bans on the provision of audit and business consulting services.

News

Enforcement Actions

The Office of the Attorney General of Switzerland (OAG) ordered three Swiss subsidiaries of the multinational group SBM Offshore to pay over CHF 7 million for failing to prevent bribery of foreign public officials in Angola, Equatorial Guinea and Nigeria.

The Swiss Financial Market Supervisory Authority announced that it has found the Lugano, Switzerland-based bank in serious breach of the anti-money laundering requirements in connection with Venezuelan client relationships.


Important Facts

  • The U.S. Department of State labels Switzerland as a major money laundering jurisdiction. The country’s central geographic location; political neutrality; relative social and monetary stability; sophisticated financial services sector; increasing presence in precious metals refinement; and long tradition of banking secrecy all contribute to Switzerland’s success, while also making Switzerland a prime target for money laundering abuse. Reports indicate criminals attempt to launder illegal proceeds in Switzerland via financial crimes, narcotics trafficking, arms trafficking organized crime, and terrorism financing. Switzerland has been a favored venue for kleptocrats to stash ill-gotten funds. Foreign narcotics trafficking organizations, often based in Russia, the Balkans, Eastern Europe, South America and West Africa, dominate narcotics-related money laundering operations in Switzerland. According to a 2015 national assessment of money laundering and terrorist financing in Switzerland, the main threats for the financial sector are fraud, embezzlement, corruption and criminal organizations. There are currently 21 casinos in Switzerland. While casinos are generally well regulated, there are concerns they are being used to launder money. Corrupt casino employees also are known to have facilitated drug money laundering activities.
  • KYC covered entities:Banks; securities and insurance brokers; money exchangers or remitters; financial management firms and wealth managers; investment companies; insurance companies; casinos; financial intermediaries; commodities traders; and investment advisors
  • STR covered entities:Banks; securities and insurance brokers; money exchangers or remitters; financial management firms and wealth managers; casinos; financial intermediaries; and investment advisors
  • Enhanced due diligence procedures for PEPs:Foreign:YesDomestic:Yes
  • Money laundering Criminal Prosecutions/Convictions: Prosecutions:687 (2014); Convictions:57 (2014)
-Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 8 High : 0
Largely Compliant : 27 Substantial : 7
Partially Compliant : 5 Moderate : 4
Non-Compliant : 0 Low : 0

Switzerland's technical compliance was re-rated in a Feb. 13, 2020 follow-up report

BASEL i

Rank : 68/110
Score : 4.89/10

TRANSPARENCY INTERNATIONAL i

Rank : 7/180
Score : 84/100

Tax Justice Network i

Rank : 3/133
Score : 74/100