Switzerland’s Compliance with Anti-Terrorism Financing Laws Under Scrutiny by FATF

The Financial Action Task Force (FATF) has published Switzerland’s fourth follow-up report, evaluating the country’s progress in combating financial crime and ensuring integrity in its financial centre. While Switzerland has made significant strides in revising its Anti-Money Laundering Act (AMLA), further improvements are needed to meet international standards.

Progress Made

The FATF praised Switzerland’s progress since its last mutual evaluation in 2016, highlighting the country’s efforts to address shortcomings identified by the task force. Amendments to the AMLA have largely addressed issues related to customer due diligence, a significant improvement for the financial sector.

Remaining Challenges

Despite these advancements, the Federal Council believes that additional measures are necessary to ensure transparency of legal entities and advisory activities connected with company structuring and trusts. The council is currently consulting on a proposal for:

• Introduction of a register of beneficial owners
• Due diligence requirements for high-risk activities in legal professions

The consultation period will run until November 29, 2023.

Next Steps

Switzerland’s next FATF mutual evaluation is expected to take place in 2027/2028, when its system will be comprehensively re-evaluated. In the meantime, the country will continue to work towards implementing necessary reforms to meet international standards.

Contact Information

For further information, please contact:

• Communications State Secretariat for International Finance +41 58 462 46 16 info@sif.admin.ch