Financial Crime World

Switzerland’s Financial Crimes Fight: A Billion-Dollar Battle

Switzerland, known for banking secrecy and financial stability, has seen a significant surge in financial crime prevention activities in the past three years.

A Renewed Dedication to Combat Financial Crimes

According to recent reports, the number of suspicious activity reports (SARs) filed in Switzerland has doubled, with a total value of nearly SFr18 billion. This increase illustrates the Swiss authorities’ renewed dedication to combating financial crime.

  • In 2019, Swiss regulators received 7,365 SARs, a considerable jump from the 3,600 reports filed in 2016.
  • These reports, usually filed by financial institutions, reveal potential money laundering or terrorist financing attempts.

Strengthening Regulatory Framework

The Swiss Financial Market Supervisory Authority (FINMA) has continued efforts to strengthen its regulatory framework and adhere to international anti-money laundering (AML) and counter-terrorist financing (CTF) standards.

  • FINMA adopts a risk-based approach to supervision, requiring financial institutions to establish and maintain effective AML and CTF measures.
  • This approach includes on-site audits and off-site monitoring, ensuring compliance with regulatory requirements.

Enhancing Anti-Financial Crime Capabilities

The Swiss government has implemented various measures to enhance its anti-financial crime capabilities.

  • The automatic exchange of tax information between countries under the Common Reporting Standard (CRS), launched in 2017, provides Swiss tax authorities with reports on financial accounts held abroad by Swiss tax residents.

Collaborative Efforts

Collaborations between civil society, law enforcement, and financial institutions have become increasingly important.

  • Organizations such as the Basel Institute on Governance and the Geneva Financial Center promote a culture of AML through awareness campaigns, workshops, and educational programs.

Ongoing Challenges

Financial crime continues to be a significant challenge, as the global trend towards increasing financial criminal activities does not seem to leave Switzerland untouched.

  • New technologies and tactics are emerging, forcing Switzerland to remain agile and resilient in its approach to financial crime prevention.

A Continued Commitment

The future demands a continued commitment to:

  • Enhanced regulatory measures
  • Ongoing collaboration
  • A strong culture of compliance within financial institutions.