Financial Crime World

Switzerland’s Crackdown on Terrorist Financing: A Commitment to Integrity in its Financial Centre

Zurich, Switzerland - Switzerland has consistently demonstrated its commitment to maintaining a clean and trustworthy financial centre, rigorously implementing anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. The country’s efforts to combat illegal financial flows are crucial for ensuring the integrity of its financial sector, preventing sustainable growth, and fueling crime, terrorism, and corruption.

Strengthening AML/CFT Regime

To further strengthen its AML/CFT regime, Switzerland has proposed a range of measures aimed at increasing transparency and combating money laundering. These include:

  • Introduction of a federal register of beneficial owners of legal entities
  • Due diligence requirements for high-risk activities in the legal professions
  • Other necessary steps to combat money laundering and terrorist financing more effectively

Revised Anti-Money Laundering Act

The country’s Anti-Money Laundering Act has recently undergone significant revisions, with key changes aimed at implementing international standards. The revised act includes measures for financial intermediaries regarding:

  • Beneficial ownership
  • Client data updates
  • Suspicious activity reports
  • Transparency of associations
  • Strengthened supervision and controls for precious metals

FATF Recognition

Switzerland’s efforts have been recognized by the Financial Action Task Force (FATF), which published a positive assessment of the country’s progress in its latest follow-up report. The FATF acknowledged Switzerland’s significant strides in implementing AML/CFT measures, particularly with the revision of the Anti-Money Laundering Act.

International Cooperation

In addition to domestic efforts, Switzerland actively participates in international cooperation to combat money laundering and terrorist financing. As a member of the FATF, the country contributes to the global fight against financial crime, regularly evaluating its compliance with international standards.

Interdepartmental Coordinating Group on Combating Money Laundering and the Financing of Terrorism (CGMF)

A key player in this effort is the CGMF, established by the Federal Council in 2013. The CGMF publishes regular reports on the national assessment of money laundering and terrorist financing risks, providing valuable insights into the country’s efforts to combat these threats.

Commitment to Integrity

Switzerland’s commitment to integrity in its financial centre is unwavering, and its ongoing efforts to strengthen AML/CFT regulations demonstrate a steadfast dedication to protecting the country’s financial sector from abuse.