Financial Crime World

Switzerland Boosts Tools to Combat Financial Crime Risks

National Report Highlights Persistent Threat and Enhanced Defenses

The Swiss government has published its second national report on the risks of money laundering and terrorist financing, highlighting both the persistent threat and efforts to enhance the country’s defenses. The report by the interdepartmental coordinating group on combating money laundering and the financing of terrorism (CGMF) shows that Switzerland remains a significant target for money launderers.

Risks Persist in Switzerland’s Financial Center

The country’s financial center is highly interconnected with global markets, making it vulnerable to foreign corruption and other illicit activities. The report notes three areas where risks have increased since 2015:

  • Online Casinos: Authorized in Switzerland only in 2019, online casinos have created new opportunities for money launderers.
  • Terrorist Financing: The growing threat of terrorist financing has been a concern for Swiss authorities.
  • Crypto Assets: The increasing popularity of crypto assets has brought new challenges in preventing financial crime.

Enhanced Defenses and Legislative Provisions

Switzerland has implemented various legislative provisions aimed at enhancing its defenses against money laundering and terrorist financing since the last report in 2015. These measures include:

  • Improved Systems for Detecting Suspicious Transactions: Financial institutions have been required to implement more effective systems for detecting suspicious transactions.
  • Enhanced Due Diligence Requirements: Financial institutions have been subject to enhanced due diligence requirements to prevent money laundering and terrorist financing.

Commitment to a Safe and Stable Financial Center

The Swiss authorities will continue to prioritize effective systems for preventing money laundering and combating terrorist financing. They will review these systems regularly to identify areas for improvement, ensuring that Switzerland remains committed to maintaining its reputation as a safe and stable financial center.