Financial Crime World

Switzerland’s Unwavering Battle Against Financial Crimes: A Look at the Numbers

Switzerland is known for its sturdy financial sector and meticulous banking system. The country has long been a global leader in the fight against financial crimes, corruption, tax evasion, and over-indebtedness. According to the State Secretariat for International Financial Matters (SIF), Switzerland has made impressive strides in this area.

Decline in Illicit Financial Flows

The SIF reported that Illicit Financial Flows (IFFs) through Switzerland, which include proceeds from bribery, embezzlement, misappropriation of public funds, and money laundering, have been decreasing over the past decade. In 2018, the illicit inflows amounted to CHF 29.5 billion ($30.4 billion USD), a decrease of 34% compared to 2004.

Money Laundering Decline

One of the most prevalent forms of financial crime, money laundering, has also shown a substantial decrease. According to a 2018 report by the Financial Action Task Force (FATF), a global organization that sets standards for anti-money laundering and combating the financing of terrorism, Switzerland was rated as compliant in all areas of its anti-money laundering and countering the financing of terrorism (AML/CFT) systems.

Stolen Asset Recovery

Switzerland’s commitment to recovering and returning assets stolen through corrupt practices has also been noteworthy. In cooperation with the World Bank and the Stolen Asset Recovery (StAR) Initiative, the country had made significant strides in the recovery of stolen assets. Between 2015 and 2017, Switzerland ranked third in the world for asset recoveries, with a total of $1.7 billion recovered.

FINMA Enforcement

The Swiss Financial Market Supervisory Authority (FINMA) plays a vital role in ensuring the financial sector’s compliance with anti-financial crime laws. Between 2016 and 2019, FINMA initiated 49 enforcement proceedings for money laundering and market manipulation, imposing penalties totaling over CHF 297 million ($308 million USD). The largest penalties were imposed on HSBC Private Bank (Suisse) SA for money laundering violations, totaling CHF 212 million ($220 million USD).

Continuous Improvement

Despite these successes, Switzerland acknowledges the need for continuous improvement and increased collaboration with international partners in the fight against financial crimes. The SIF emphasizes that it will continue to strengthen its financial regulation framework and supports international initiatives like the EU’s fifth Anti-Money Laundering Directive and the FATF’s ongoing evaluation process.

Conclusion

Switzerland’s unwavering commitment to combating financial crimes and maintaining the integrity of its financial sector has solidified its position as a respected global leader in this field. With robust regulatory frameworks, dedicated authorities, and a steadfast determination to tackle financial crimes, Switzerland stays at the forefront of the global fight against illicit financial activities.

  • Illicit financial flows decreased by 34% between 2004 and 2018.
  • Switzerland was rated as compliant in all areas of AML/CFT systems by the FATF.
  • Stolen asset recoveries totaled $1.7 billion between 2015 and 2017.
  • FINMA initiated 49 enforcement proceedings between 2016 and 2019, imposing penalties over CHF 297 million.
  • Switzerland continues to strengthen its financial regulation framework and collaborate with international partners.