Financial Crime World

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Switzerland Takes a Strong Stance Against Financial Crime

Zurich, Switzerland - In its ongoing efforts to combat financial crime, corruption, and tax evasion, Switzerland has made significant strides in recent years. The country’s financial centre is one of the world’s most important, with a strong international focus.

Commitment to International Standards

In recognition of the problem of illicit financial flows, Switzerland has committed to international standards to combat financial crime, tax evasion, money laundering, and corruption. It has also contributed substantially to the development of international standards, which it then transposes into national law and enforces effectively.

Automatic Exchange of Financial Account Information (AEOI)

Switzerland has played a key role in the AEOI, signing agreements with over 100 partner states, including emerging and developing countries. In 2021, it transmitted data on some 4 million financial accounts to its 96 partner states.

The country’s tax authorities have provided tax-related information to other countries through administrative assistance in tax matters. Switzerland has a network of over 140 states for tax-related administrative assistance upon request and responded to over 3,000 requests from 2019 to 2021.

Switzerland provides legal assistance to foreign countries in cases of cross-border crime, including large-scale cases such as Petrobras (Brazil) and 1MDB (Malaysia).

Prevention of Base Erosion and Profit Shifting

The country has implemented measures to prevent base erosion and profit shifting by companies, actively participating in the OECD’s BEPS project. It exchanges information on advance tax rulings with countries that have ratified the administrative assistance convention and is open to extending this to all states that comply with international standards.

Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)

Switzerland’s AML/CFT legislation has been adapted several times to make it compliant with international standards. The country has strengthened its preventive legal framework, improved client data updating and beneficial owner transparency, and added tax fraud as a predicate offence.

Global Initiatives and Capacity Building

Switzerland supports various global initiatives to strengthen AML/CFT capacity in recipient countries and is a member of the Extractive Industries Transparency Initiative (EITI). It also requires large companies operating in the extractive sector to disclose payments made to government agencies.

Asset Return and Recovery

If assets originating from offences listed in the United Nations Convention against Corruption enter the Swiss financial sector, Switzerland is prepared to provide assistance to freeze these assets with a view to their confiscation and return. The country has acquired significant experience and achieved concrete results in the area of asset return, returning over USD 2 billion to affected populations in countries such as Nigeria, the Philippines, Peru, Angola, and Kazakhstan.

International Anti-Corruption Mechanisms

Switzerland is actively involved in several international anti-corruption mechanisms and engages in anti-corruption dialogue with international sports federations. It contributes to strengthening anti-corruption and financial supervisory authorities and the International Organization of Supreme Audit Institutions (INTOSAI) through its development cooperation.

Conclusion

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In conclusion, Switzerland’s efforts to combat financial crime, corruption, and tax evasion demonstrate its commitment to upholding high standards of transparency and accountability in the financial sector.