Financial Crime World

Switzerland’s Battle Against Financial Crimes: The Role of the State Secretariat for International Financial Matters (SIF)

Switzerland, known for its robust financial system and strict banking secrecy, is at the forefront of global efforts to combat financial crimes, corruption, tax evasion, and over-indebtedness. The State Secretariat for International Financial Matters (SIF), a department within the Federal Department of Finance (FDF), plays a pivotal role in this fight.

Shaping International Standards

The SIF is responsible for shaping and implementing financial market policy based on international standards. By adhering to these standards, Switzerland takes a proactive approach in combatting illicit financial flows. The organization collaborates with international organizations:

  • Financial Action Task Force (FATF): Sets the global agenda in combating financial crimes and money laundering.
  • Global Forum on Transparency and Exchange of Information for Tax Purposes: Promotes transparency and exchange of information between countries.

Supporting Country Compliance

In collaboration with various Swiss authorities and partner countries, the SIF supports the implementation of international standards and conducts assessments of countries’ progress. This work is essential in:

  • Promoting transparency
  • Preventing the abuse of financial systems for illicit activities

Facilitating International Cooperation

The SIF facilitates international cooperation and information exchange:

  • Asset Recovery: Helps recover assets stolen from other countries
  • Preventing Criminal Proceeds: Ensures that proceeds of crime do not find their way into the Swiss financial system
  • Debt Settlement: Supports debtor countries in settling their debts and avoiding a cycle of excessive debt

Cooperating with the Private Sector

SIF’s efforts in preventing financial crimes extend to cooperation with the private sector. In 2017:

  • The Swiss banking sector voluntarily adopted FinSA, a self-regulatory due diligence framework to prevent money laundering and terrorist financing.

Switzerland’s commitment to financial crime prevention measures is a testament to its dedication to supporting the international community and maintaining the integrity of the global financial system. The SIF’s innovative and collaborative approach sets a strong example for other countries to follow in combating illicit financial flows and promoting transparency.