Switzerland Cracks Down on Criminal Wealth: Asset Forfeiture and Confiscation Policies in Focus

In an effort to combat crime effectively, Switzerland has implemented strict asset forfeiture and confiscation policies. The country’s laws allow authorities to seize and divide assets acquired through criminal means, with the aim of denying criminals their ill-gotten gains.

International Cooperation Key to Success

According to the Federal Act on the Division of Forfeited Assets (DFAA), which came into effect in 2004, Switzerland can share seized assets with foreign states, as well as divide them domestically between the federal government and cantons. The DFAA provides the legal framework for asset sharing agreements between Switzerland and foreign states.

Types of International Sharing

• Active international sharing: Swiss authorities confiscate assets under Swiss law and offer a share to the foreign state that supported the proceedings.
• Passive international sharing: Foreign authorities confiscate assets under their own laws and request assistance from Switzerland, which provides evidence and documents or hands over assets located in the country.

Role of the Federal Office of Justice (FOJ)

The FOJ plays a crucial role in negotiating asset sharing agreements with foreign states. The FOJ:

• Grants cantonal and federal authorities a hearing before concluding an agreement
• Ensures that the assets are shared equally between Switzerland and the foreign state, unless otherwise agreed

Domestic Division Framework

In cases where the gross contribution exceeds CHF 10 million, the Federal Department of Justice and Police (FDJP) must grant its approval in advance. The DFAA provides a simple division framework between the federal government and cantons:

• 5/10 goes to the leading authority
• 2/10 goes to the canton where the assets were located
• 3/10 goes to the federal government

Success Stories

Between 2004 and 2015, Switzerland received around CHF 90 million in assets of criminal origin through international asset sharing agreements. In most cases, the assets were split 50:50. The largest asset sharing cases since the DFAA came into effect include:

• A CHF 58.4 million deal with Japan
• A USD 50 million agreement with the USA

Conclusion

The Swiss government’s commitment to combating crime and recovering criminal assets has led to significant success in recent years, with forfeited assets being used for various purposes at the discretion of the recipient canton or federal authority. As the country continues to refine its asset forfeiture and confiscation policies, it is clear that Switzerland is a leader in this field, working closely with international partners to deny criminals their ill-gotten gains.