Financial Crime World

Switzerland’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations Under Global Scrutiny

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International financial watchdog FATF has recently evaluated Switzerland’s progress in implementing anti-money laundering and combating the financing of terrorism (AML/CFT) regulations. The report highlights areas where Switzerland is compliant or largely compliant with global standards, as well as those that require improvement.

Key Findings

  • Switzerland scored high marks in several key areas:
    • Assessing risk and applying a risk-based approach
    • National cooperation and coordination
    • Record keeping
  • However, there are also areas where the country falls short:
    • Financial institution secrecy laws
    • Correspondent banking
    • Transparency and beneficial ownership of legal arrangements

Progress and Challenges

The report notes that Switzerland has made significant progress in implementing AML/CFT regulations since its last assessment. However, it still faces challenges in certain areas, including:

  • The country has not yet implemented measures to prevent the use of new technologies for money laundering and terrorist financing.
  • There is a lack of transparency and beneficial ownership of legal arrangements.
  • DNFBPs (designated non-financial businesses and professions) are not being regulated and supervised effectively.

Recommendations

The FATF report recommends that Switzerland take steps to address these shortcomings, including:

  • Implementing measures to prevent the use of new technologies for money laundering and terrorist financing
  • Improving transparency and beneficial ownership of legal arrangements
  • Regulating and supervising DNFBPs more effectively

Commitment to Compliance

Despite these challenges, Switzerland remains committed to implementing effective AML/CFT regulations and working with international partners to combat money laundering and terrorist financing. The country has already taken steps to address some of the FATF’s concerns and will continue to work towards full compliance with global standards.

Accessing the Full Report

The full report is available online, providing a detailed assessment of Switzerland’s progress in implementing AML/CFT regulations.