Financial Crime World

Switzerland Steps Up Efforts to Combat Financing of Terrorism

Maintaining a Clean Financial Centre

In its relentless pursuit to maintain a clean financial centre, Switzerland has introduced new measures to combat money laundering and terrorist financing. The country’s integrity as a financial hub relies heavily on effective anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.

The Threat of Illegal Financial Flows

Illegal financial flows pose a significant threat to the integrity of the financial sector, fuelling crime, terrorism, and corruption. To address this issue, Switzerland has been working tirelessly to ensure its financial centre remains untainted. The country’s commitment to international cooperation is evident in its active participation in the Financial Action Task Force (FATF).

Recent Developments

Recent developments have seen the Federal Council introducing a bill to amend the Anti-Money Laundering Act. This proposal includes measures such as:

  • Introduction of a federal register of beneficial owners
  • Due diligence requirements for high-risk activities
  • Other necessary steps to enhance AML/CFT regulations

Implementing Key Recommendations

In 2021, Parliament adopted an amendment to the Anti-Money Laundering Act, implementing key recommendations from the FATF’s mutual evaluation report in 2016. The revised act entered into force on January 1, 2023.

FATF’s Fourth Follow-up Report

The FATF recently published Switzerland’s fourth follow-up report, acknowledging progress made by the country, particularly with regards to the AMLA revision. The report highlights Switzerland’s efforts to strengthen its defences against money laundering and terrorist financing.

International Cooperation

International cooperation remains crucial in this fight. Switzerland actively participates in the FATF, working closely with member states to ensure compliance with international standards. In 2016, the FATF evaluated Switzerland for the fourth time, identifying certain shortcomings and making recommendations for improvement.

Coordination Efforts

To coordinate efforts, the Federal Council established an interdepartmental coordinating group on combating money laundering and terrorist financing (CGMF) in 2013. The CGMF has published two national reports on the risks of money laundering and terrorist financing, as well as several analytical reports on specific areas.

Conclusion

As Switzerland continues to combat the financing of terrorism, it remains committed to upholding its reputation as a financially stable and secure nation. By strengthening its AML/CFT regulations and international cooperation, Switzerland ensures that its financial centre remains a beacon of integrity in the global economy.