50px-Flag_of_Switzerland.svg Switzerland

New Documents

The Swiss Financial Market Supervisory Authority announced that it opened bankruptcy proceedings against FlowBank SA to protect depositors after it was determined that the bank no longer has the minimum capital required for its business operations.

The Swiss Federal Council approved a proposal to enhance the country’s anti-money laundering and counterterrorist financing framework.

News

Enforcement Actions

The Swiss Financial Market Supervisory Authority took administrative action against the Geneva, Switzerland-based bank for breaching its anti-money laundering obligations.

The Office of the Attorney General of Switzerland announced that the Zürich, Switzerland-based bank was ordered to pay a fine of CHF 750,000 after it was convicted of corporate liability in connection with aggravated money laundering committed by two employees.


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