Financial Crime World

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Switzerland’s Counter-Terrorism Financing Regulations Under Scrutiny: A Follow-Up Report

A recent assessment has revealed mixed results in Switzerland’s efforts to combat terrorism financing, with some areas showing significant progress and others requiring improvement.

Implementation of FATF Recommendations

Switzerland received a rating of “largely compliant” for its implementation of the Financial Action Task Force (FATF) recommendations. The report found that the country has made significant progress in:

  • Assessing risk and applying a risk-based approach
  • Implementing measures to confiscate and freeze assets linked to terrorism financing

National Cooperation and Coordination Efforts

Switzerland was rated “compliant” for its national cooperation and coordination efforts, as well as its laws and regulations related to terrorist financing. The country’s financial institution secrecy laws were deemed “partially compliant”, with concerns raised about the lack of transparency in certain cases.

Areas Requiring Improvement

In other areas, Switzerland received ratings ranging from “largely compliant” to “non-compliant”. For example:

  • Regulations and supervision of financial institutions: concerns that these regulations may not be sufficient to prevent money laundering and terrorist financing
  • Targeted financial sanctions related to terrorism and proliferation: implementation needs improvement
  • Regulation of non-profit organizations: areas for improvement
  • Correspondent banking relationships: regulation and supervision need strengthening

Conclusion

While Switzerland has made progress in combating terrorism financing, there is still much work to be done. The country must continue to strengthen its regulations and enforcement mechanisms to prevent the misuse of its financial system for terrorist purposes.

Full Report Available

The full report can be found on the FATF website, providing a detailed assessment of Switzerland’s counter-terrorism financing regulations and recommendations for improvement.