Combating Terrorism Financing in Switzerland: New Report Highlights Evolution of Risks and Improved Toolkit
Introduction
The Federal Department of Finance has published its second report on the national evaluation of the risks of money laundering and terrorist financing in Switzerland. This report provides an update on the country’s efforts to combat these threats, highlighting the evolution of risks since 2015 and the progress made in strengthening the regulatory framework.
Risks Identified
According to the report, Switzerland remains at risk of being misused as a hub for money laundering, particularly due to its interconnected financial centre. The report notes that major international money laundering cases have confirmed the magnitude of the threat from foreign corruption, highlighting the complexity and vulnerability of financial intermediaries involved in international transactions.
The following risks were identified:
- Online Casinos: Authorized in Switzerland only recently, online casinos pose a new risk.
- Terrorist Financing: The report highlights the growth of terrorist financing as a significant threat.
- Crypto Assets: The rapid growth and popularity of crypto assets have brought new risks to the financial system.
Progress Made
To address these evolving threats, the Swiss authorities have implemented legislative provisions to improve the country’s toolkit for combating money laundering and terrorist financing. The report concludes that despite some continuity in the identified risks, the country has made significant progress in strengthening its regulatory framework since 2015.
Conclusion
The Swiss authorities will continue to prioritize effective systems for combating money laundering and terrorist financing, reviewing these systems regularly to identify potential areas for improvement.
Contact Information
- State Secretariat for International Finance
- Tel. +41 58 462 46 16
- info@sif.admin.ch