Financial Crime World

Switzerland’s Fight Against Financial Crime and Corruption

International Cooperation and Asset Recovery

Switzerland has taken a strong stance against financial crime, corruption, and tax evasion. The country’s focus is on international cooperation and asset recovery, with various measures implemented to combat illicit financial flows.

Key Components of Switzerland’s Efforts

  • Automatic Exchange of Financial Account Information (AEOI): Data transmitted to 96 partner states in 2021.
  • Administrative Assistance in Tax Matters: Provided through a network of over 140 states, with Switzerland responding to over 3,000 requests between 2019 and 2021.
  • Global Forum on Transparency and Exchange of Information for Tax Purposes: Rated Switzerland’s implementation as “largely compliant” in March 2020.

Base Erosion and Profit Shifting (BEPS)

Switzerland is participating in the BEPS project, implementing agreed minimum standards to prevent BEPS-related risks. Advance tax rulings are automatically exchanged with countries that have ratified the administrative assistance convention, improving transparency and mitigating BEPS-related risks.

Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)

The country has adapted its AML/CFT legislation to comply with international standards, with the Financial Action Task Force (FATF) certifying that Switzerland’s system is generally robust and effective. Switzerland has strengthened its preventive legal framework, particularly in relation to politically exposed persons.

Global Initiatives

Switzerland supports various global initiatives to strengthen AML/CFT capacity in recipient countries. The country also participates in the Extractive Industries Transparency Initiative (EITI), requiring large companies operating in the extractive sector to disclose payments of more than CHF 100,000 made to government agencies.

Asset Recovery

Asset recovery is a critical component of Switzerland’s anti-corruption policy. If assets originating from offenses listed in the United Nations Convention against Corruption enter the Swiss financial sector, the country is prepared to provide assistance through mutual legal assistance in criminal matters to freeze these assets with a view to their confiscation and return.

Success Stories

Switzerland has acquired considerable experience in asset recovery, returning over USD 2 billion to affected populations in countries such as Nigeria, the Philippines, Peru, Angola, and Kazakhstan. The country’s pioneering role in this field is internationally recognized.

For more information on Switzerland’s efforts to combat financial crime and corruption, please visit the website of the Federal Department of Foreign Affairs (FDFA).