Financial Crime World

Switzerland’s Financial Crime Investigators Cracking Down on White-Collar Offenders

As part of a broader effort to combat financial crime, Switzerland’s regulatory authorities are cracking down on corporate fraud, bribery, corruption, insider dealing, market abuse, money laundering, terrorist financing, and breaches of financial and trade sanctions. To increase transparency and accountability, the authorities have also strengthened their powers of investigation and enforcement.

What Does This Mean for Companies Operating in Switzerland?

Companies operating in Switzerland must be aware of the specific offences being targeted by Swiss authorities and take steps to ensure compliance with the country’s strict laws and regulations.

Key Questions and Answers

Offences Being Targeted

  • Corporate fraud, including false accounting and misappropriation of funds
  • Bribery and corruption, both domestically and internationally
  • Insider dealing and market abuse, including manipulation of financial markets
  • Money laundering and terrorist financing
  • Breaches of financial and trade sanctions

Regulatory Authorities Responsible for Investigation and Enforcement

  • The Swiss Federal Banking Commission (SFBC)
  • The Swiss Financial Market Supervisory Authority (FINMA)
  • The Office of the Attorney General of Switzerland (OAG)

Powers of Investigation and Enforcement

  • Conduct searches and seizures
  • Freeze assets and impose penalties
  • Compel witnesses to testify
  • Impose criminal sanctions, including fines and imprisonment

Strengthening Safeguards

In addition to these investigative powers, the authorities are focusing on strengthening safeguards to prevent financial crime, including:

  • Improving financial record keeping and reporting requirements
  • Enhancing due diligence procedures for companies operating in high-risk sectors
  • Increasing transparency around corporate ownership and control structures

What Happens If a Company is Accused of Committing Financial Crimes?

Companies accused of committing financial crimes can expect rigorous investigation and enforcement by the authorities. Companies must be prepared to cooperate fully with investigations, including providing evidence and witnesses. Companies may face criminal sanctions, including fines and imprisonment, if found guilty of financial crimes.

Mitigating Exposure to Corruption and Corporate Crime

Companies can mitigate exposure to corruption and corporate crime by:

  • Implementing robust compliance programs
  • Conducting thorough due diligence
  • Maintaining transparency around their operations

Conclusion

As Switzerland continues to crack down on financial crime, companies operating in the country must be prepared to adapt to changing regulations and enforcement priorities. By understanding the specific offences being targeted, the authorities responsible for investigation and enforcement, and the safeguards in place to prevent financial crime, companies can better manage exposure to corruption and corporate crime.