Switzerland

New Documents

The Office of the Attorney General of Switzerland highlighted that it has secured the forfeiture of approximately CHF 36.6 million in connection with investigations into corrupt South American football officials.

The Switzerland Federal Tax Administration announced the exchange of information on financial accounts with 86 countries which facilitated investigations into tax evasion and other financial crimes.

Enforcement Actions

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.

The Swiss Financial Market Supervisory Authority issued a reprimand against the Geneva, Switzerland-based private bank for breaches of the due diligence requirements under the anti-money laundering regulations.


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 : 78/125
Score : 4.96/10

TRANSPARENCY INTERNATIONAL i

Rank : 4/180
Score : 85/100

Tax Justice Network i

Rank : 3/133
Score : 74/100