Financial Crime World

Switzerland Takes Aim at Illicit Assets with Preventive Freezing Ordinances

Combating Corruption and Money Laundering

Since July 1st, 2016, Switzerland has implemented ordinances freezing assets of politically exposed persons (PEPs) and their entourage to combat corruption and money laundering. These measures are based on the Federal Act on the Freezing and Restitution of Illicit Assets held by Foreign Politically Exposed Persons (Foreign Illicit Assets Act or FIAA).

Support for International Cooperation

Under the act, the Swiss government provides support to foreign judicial authorities in their criminal proceedings, enabling them to request mutual legal assistance from Switzerland. The relevant judicial authorities are responsible for initiating criminal proceedings and demonstrating the illicit origin of the frozen assets.

Targeting Illicit Assets

Switzerland has taken action to freeze assets of former leaders and their entourage in various countries, including:

  • Tunisia: Following violent uprisings and regime changes, Switzerland froze assets belonging to Ben Ali and his entourage.
  • Egypt: Switzerland froze assets related to Mubarak and his entourage. In some cases, acquittals and reconciliation agreements led to the closure of mutual legal assistance procedures by Swiss authorities, resulting in the lifting of the freeze on Egyptian assets.
  • Ukraine: Following the Ukrainian revolution in February 2014, the Federal Council launched administrative proceedings to confiscate assets frozen in Switzerland, totaling over CHF 130 million.
  • Libya and Syria: Switzerland also froze assets in connection with international sanctions.

Notable Exceptions

In some cases, asset freeze ordinances have expired or been lifted, such as:

  • Tunisia: The ordinance relating to Tunisia expired on January 18th, 2021, after reaching its statutory maximum duration of ten years.
  • Egypt: Several acquittals and reconciliation agreements led to the closure of mutual legal assistance procedures by Swiss authorities, resulting in the lifting of the freeze on Egyptian assets on December 20th, 2017.

Commitment to Combating Corruption and Money Laundering

Switzerland’s actions demonstrate its commitment to combating corruption and money laundering, as well as supporting international efforts to bring criminals to justice.