Financial Crime World

Switzerland’s Asset Forfeiture and Confiscation Efforts: A Look at International Cooperation and Domestic Division

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Switzerland has established a robust system for seizing and confiscating assets acquired by criminal means to combat crime effectively. The Federal Department of Justice and Police (FDJP) and Federal Office of Justice (FOJ) play crucial roles in this process, which involves both international cooperation and domestic division.

International Cooperation

The seizure and confiscation of illegal gains is an essential tool in the fight against crime. It deprives criminals of their ill-gotten wealth and sends a strong message that crime does not pay. However, these assets are often located outside of Switzerland, requiring international cooperation to recover them. To facilitate this cooperation, Switzerland has entered into agreements with foreign states to share seized assets.

Federal Act on the Division of Forfeited Assets

The Federal Act on the Division of Forfeited Assets (DFAA), which came into force in 2004, provides the legal framework for asset sharing between Switzerland and foreign states, as well as between the federal government and cantons. The DFAA distinguishes between active and passive international sharing, with Switzerland offering a share of seized assets to foreign states that have supported criminal proceedings.

Process of Dividing Forfeited Assets

The process of dividing forfeited assets between Switzerland and foreign states involves several steps:

  • The FOJ is notified by federal or cantonal authorities considering sharing seized assets with a foreign state.
  • The FOJ conducts negotiations with the foreign state to conclude an asset-sharing agreement.
  • Assets are typically shared equally between the two parties, unless they originated from bribing public officials or improper conduct of a public office, in which case Switzerland reimburses the foreign state in full.

Division of Forfeited Assets Between Federal Government and Cantons

The FOJ also concludes agreements for dividing forfeited assets between the federal government and cantons. This process is governed by simple rules that ensure a balance between public authorities involved in criminal proceedings and prevent conflicts of interest:

  • Assets are divided if they amount to at least CHF 100,000.
  • 5/10 go to the authority that led the investigation and ordered the forfeiture.
  • 2/10 go to the cantons where the assets were located.
  • 3/10 go to the federal government.

Results of International Cooperation

Between 2004 and 2015, Switzerland received around CHF 90 million in seized assets through international agreements. In most cases, these assets were split 50:50 with the foreign state, and had been forfeited following a foreign or Swiss forfeiture ruling, often related to drug offenses or money laundering.

Notable Cases

Two notable cases include:

  • Switzerland’s sharing of funds worth CHF 58.4 million with Japan.
  • Switzerland’s sharing of USD 50 million with the USA.

Conclusion

As Switzerland continues to work with international partners to combat crime and recover illegal assets, its asset forfeiture and confiscation efforts serve as a model for effective cooperation and division.