Financial Crime World

Switzerland’s Crusade Against Money Laundering: New Laws and International Cooperation

Switzerland, known for its global financial hub status, is dedicated to maintaining the integrity of its financial center by enforcing strict anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. The country’s financial system, essential for its economy and reputation, is under constant threat from illicit financial flows. These flows can fund crime, terrorism, and corruption, compromising the financial sector’s sustainability.

Strengthening the National Regime

In response to these risks, the Swiss Federal Council is revising national laws to reinforce the regime and protect the financial center better. Proposed measures include:

  • Establishment of a federal register of beneficial owners of legal entities
  • Increased due diligence requirements
  • Other necessary enhancements to combat money laundering and terrorist financing more effectively

These changes conform to international standards.

International Collaboration

Switzerland’s commitment to a clean financial sector doesn’t stop at its borders. The country consistently collaborates with the international community through organizations like the Financial Action Task Force (FATF). Switzerland’s participation in the FATF includes:

  • Regular evaluations of its adherence to FATF standards
  • Improving the overall effectiveness of its anti-money laundering regime

FATF Evaluation Report

In its most recent evaluation report, the FATF acknowledged Switzerland’s progress, particularly in relation to the revision of the Anti-Money Laundering Act (AMLA), which took effect in March 2021. The changes brought about by the AMLA amendment addressed the following areas:

  • Beneficial ownership
  • Updating of client data
  • Suspicious activity reporting
  • Transparency of associations
  • Strengthened supervision and controls for precious metals

Interdepartmental Coordinating Group

Switzerland’s dedication to fighting money laundering and terrorist financing also includes the establishment of the interdepartmental coordinating group on combating money laundering and the financing of terrorism (CGMF) in 2013. This group has published national assessments of money laundering and terrorist financing risks in various sectors and continues to release new reports. The CGMF’s reports on money laundering and terrorist financing risks provide valuable insights into potential vulnerabilities within the Swiss financial system.

For more information on the specific measures in the current bill to amend the anti-money laundering act and reports on money laundering and terrorist financing risks, visit the Swiss Federal Finance Department’s website.