Financial Crime World

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Switzerland’s AML/CFT Regulations: Ensuring Integrity of Financial Centre

Switzerland attaches great importance to maintaining a clean financial centre and has an effective anti-money laundering (AML) and counter-terrorist financing (CFT) regime in place. The country rigorously applies this regime, recognizing that illegal financial flows can undermine the integrity of its financial sector and fuel crime, terrorism, and corruption.

Continuous Improvement

To combat money laundering and terrorist financing more effectively, Switzerland is continually working to increase transparency and strengthen its AML/CFT framework. The Federal Council has proposed a series of measures aimed at adapting the statutory basis that protects the financial centre, including:

  • Introduction of a federal register of beneficial owners of legal entities
  • Due diligence requirements for high-risk activities in the legal professions
  • Other necessary measures

Implementation of Recommendations

In March 2021, Switzerland’s Parliament adopted an amendment to the Anti-Money Laundering Act (AMLA), which aimed to implement key recommendations from the Financial Action Task Force’s (FATF) mutual evaluation report of 2016. The revised AMLA entered into force on January 1, 2023.

International Cooperation

The FATF recently published Switzerland’s fourth follow-up report, acknowledging progress made by the country in implementing the recommendations made in its last mutual evaluation. Switzerland actively participates internationally in the fight against money laundering and terrorist financing, playing an active role in the FATF.

National Efforts

To coordinate efforts to combat money laundering and terrorist financing, the Federal Council established the interdepartmental coordinating group on combating money laundering and the financing of terrorism (CGMF) in 2013. The CGMF has published several reports on:

  • National assessment of risks of money laundering and terrorist financing
  • Analytical reports on various areas

Conclusion

Switzerland’s AML/CFT regulations are designed to ensure the integrity of its financial centre and protect it from abuse. The country will continue to work internationally to combat money laundering and terrorist financing, while also implementing necessary measures at home to strengthen its AML/CFT framework.