Financial Crime World

Switzerland Takes a Leading Role in Combating Financial Crime, Corruption, and Tax Evasion

A Proactive Stance Against Illicit Financial Flows

In an effort to curb illicit financial flows, Switzerland has taken a proactive stance against financial crime, corruption, and tax evasion. As one of the world’s most important financial centers with an international focus, Switzerland recognizes the importance of mitigating risks and has committed to implementing international standards.

Key Initiatives

  • Automatic Exchange of Financial Account Information (AEOI): Switzerland has participated in AEOI since 2017 and has signed agreements with over 100 partner states, including emerging and developing economies. In 2021, the country transmitted data on more than four million financial accounts to its 96 partner states.
  • Administrative Assistance: Switzerland’s tax authorities provide tax-related information in accordance with international standards. The country’s network for tax-related administrative assistance upon request comprises over 140 states, and it has responded to over 3,000 requests from other countries since 2019.
  • Combating Base Erosion and Profit Shifting (BEPS): Switzerland plays a key role in combating BEPS by companies. As an OECD member, the country actively participates in the BEPS project and implements the agreed minimum standards.

Strengthening Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Legislation

  • Adaptation to International Standards: Switzerland has adapted its AML/CFT legislation several times in recent years to make it compliant with international standards.
  • Certification by the Financial Action Task Force (FATF): The country’s system is certified as robust and effective, and it has strengthened its preventive legal framework, especially in relation to politically exposed persons.

Capacity Building and Cooperation

  • Supporting Global Initiatives: Switzerland supports global initiatives to strengthen AML/CFT capacity in recipient countries.
  • Returning Assets to Affected Populations: Over the past 30 years, Switzerland has returned more than $2 billion to the benefit of affected populations in countries such as Nigeria, the Philippines, Peru, Angola, and Kazakhstan.

International Anti-Corruption Mechanisms

  • G20 Anti-Corruption Working Group: Switzerland is actively involved in this group.
  • OECD Convention on Combating Bribery of Foreign Public Officials: The country is a signatory to this convention.
  • United Nations Convention against Corruption: Switzerland engages with international organizations and contributes to strengthening anti-corruption authorities in developing countries.

Conclusion

Switzerland’s efforts demonstrate its commitment to combating financial crime, corruption, and tax evasion, and its proactive approach has earned it recognition as a leader in this field. The country continues to play a key role in implementing international standards and supporting global initiatives to strengthen AML/CFT capacity and combat illicit financial flows.