Financial Crime World

Switzerland Leads the Charge Against Financial Crime

In recent years, Switzerland has made significant strides in strengthening its financial center and international cooperation to combat financial crime, corruption, and tax evasion. The country’s commitment to global standards has earned it recognition as a leader in the fight against illicit financial flows.

Automatic Exchange of Financial Account Information

Since 2017, Switzerland has participated in the Automatic Exchange of Financial Account Information (AEOI) mechanism, signing agreements with over 100 partner states. In 2021, the country transmitted data on nearly 4 million financial accounts to its 96 partner states.

Switzerland’s tax authorities provide administrative assistance in accordance with international standards, responding to over 3,000 requests from 2019 to 2021. The country has also demonstrated strong cooperation in cross-border crime cases, including the Petrobras and 1MDB scandals.

  • Responded to over 3,000 requests for administrative assistance
  • Demonstrated strong cooperation in cross-border crime cases

Prevention of Base Erosion and Profit Shifting

As an OECD member, Switzerland actively participates in the base erosion and profit shifting (BEPS) project, implementing agreed minimum standards to combat tax evasion. The country exchanges information with over 60 partner states, including emerging economies, using reports for risk analysis by tax authorities.

  • Exchanged information with over 60 partner states
  • Implemented agreed minimum standards to combat tax evasion

Anti-Money Laundering and Countering the Financing of Terrorism

Switzerland has adapted its anti-money laundering and countering the financing of terrorism (AML/CFT) legislation to meet international standards. The country’s system is certified as robust and effective by the Financial Action Task Force (FATF), with almost 6,000 suspicious activity reports received in 2021.

  • Certified AML/CFT system by FATF
  • Received almost 6,000 suspicious activity reports in 2021

Extractive Sector Transparency

Switzerland supports the Extractive Industries Transparency Initiative (EITI) through funding and representation on the EITI Board. The country’s revised company law requires large extractive companies to disclose payments made to government agencies.

  • Supports EITI through funding and representation
  • Revised company law requires disclosure of payments

Asset Recovery and Anti-Corruption Efforts

Switzerland has returned over USD 2 billion to affected populations in countries such as Nigeria, the Philippines, Peru, Angola, and Kazakhstan. The country is a pioneer in asset recovery, with a strong commitment to international anti-corruption mechanisms.

  • Returned over USD 2 billion to affected populations
  • Strong commitment to international anti-corruption mechanisms

Institutional Strengthening and Capacity Development

Switzerland contributes to strengthening state institutions in developing and emerging countries through capacity development programs. The country also provides financial support to various global initiatives, including the IMF’s AML/CFT Topical Trust Fund and the World Bank’s Global Tax Programme.

  • Contributes to strengthening state institutions
  • Provides financial support to global initiatives

By taking a proactive approach to combating financial crime, Switzerland demonstrates its commitment to international cooperation and transparency, solidifying its position as a leader in the fight against illicit financial flows.