Financial Crime World

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Switzerland’s Fight Against Financial Crime: A Model of International Cooperation

The Swiss financial centre, one of the world’s most important and internationally focused, has taken numerous steps to mitigate the risks associated with financial crime. Recognizing the problem of illicit financial flows, Switzerland has committed to international standards aimed at combating financial crime, tax evasion, money laundering, and corruption.

International Cooperation

One key initiative is the automatic exchange of financial account information (AEOI), which Switzerland has been a part of since 2017. The country has signed AEOI agreements with over 100 partner states, including emerging and developing countries. In 2021, Switzerland transmitted data on some 4 million financial accounts to its 96 partner states.

Switzerland also provides administrative assistance in tax matters, responding to over 3,000 requests from other countries between 2019 and 2021. The country’s network of international cooperation includes over 140 states, making it one of the most active participants in this area.

Combating Financial Crime

The Swiss authorities also cooperate with their counterparts abroad through mutual legal assistance in cases of cross-border crime. This has included large-scale cases such as:

  • Petrobras (Brazil)
  • 1MDB (Malaysia)

To prevent base erosion and profit shifting by companies, Switzerland actively participates in the OECD’s Base Erosion and Profit Shifting (BEPS) project. The country implements agreed BEPS minimum standards, requiring large multinationals to disclose their global turnover and taxes paid.

Anti-Money Laundering and Countering the Financing of Terrorism

Switzerland is also committed to anti-money laundering and countering the financing of terrorism (AML/CFT). The country has adapted its AML/CFT legislation several times in recent years to make it compliant with international standards. In 2021, Switzerland strengthened its preventive legal framework, particularly in relation to:

  • Politically exposed persons
  • Beneficial owners

Asset Recovery

The Swiss authorities have also made significant progress in asset recovery, returning over USD 2 billion to affected populations in countries such as:

  • Nigeria
  • Philippines
  • Peru
  • Angola
  • Kazakhstan over the past thirty years. This pioneering role is internationally recognized.

International Anti-Corruption Mechanisms

Switzerland is actively involved in several international anti-corruption mechanisms, including:

  • G20 anti-corruption working group
  • OECD Convention on Combating Bribery of Foreign Public Officials
  • United Nations Convention against Corruption

Development Cooperation

Switzerland’s development cooperation also focuses on strengthening:

  • Anti-corruption and financial supervisory authorities
  • International Organization of Supreme Audit Institutions

The country is committed to building capacity in developing countries through programs such as:

  • IMF’s AML/CFT Topical Trust Fund
  • World Bank’s Global Tax Programme

Conclusion

Overall, Switzerland’s comprehensive approach to combating financial crime demonstrates its commitment to international cooperation and its role as a model for other countries to follow.