Financial Crime World

Switzerland Steps Up Efforts to Prevent Terrorist Financing and Money Laundering

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The Federal Department of Finance (FDF) has released its second national report on the risks of money laundering and terrorist financing in Switzerland, highlighting the country’s continued exposure to these threats. The report, compiled by the interdepartmental coordinating group on combating money laundering and the financing of terrorism (CGMF), provides an update on the evolution of these risks since 2015.

Risks Remain High

According to the report, Switzerland remains at risk of being misused for money laundering, particularly due to its interconnected international financial centre. Recent major money laundering cases have confirmed this threat, highlighting the magnitude of foreign corruption and the complexity of suspected incidents involving large sums and vulnerable financial intermediaries.

Areas of Concern

  • Online casinos: The rapid growth and increasing popularity of online casinos in Switzerland present a previously unknown threat.
  • Terrorist financing: The report notes that terrorist organizations are increasingly using legitimate businesses to finance their activities, making it essential for Swiss authorities to remain vigilant.
  • Crypto assets: The rapid growth and increasing popularity of crypto assets have introduced new risks, including the potential for money laundering and terrorist financing.

Regulatory Improvements

Despite continuity in these risks, three areas have seen significant changes since 2015:

Regulatory Enhancements

  • Improved regulatory and legislative toolkit for combating money laundering and terrorist financing.
  • Enhanced systems for preventing these crimes.
  • Continuous review of existing measures to identify potential areas for improvement.

Continued Efforts

The FDF’s report is part of a series of sectoral reports published by the CGMF since 2017, aiming to provide a comprehensive overview of the risks and measures in place to combat money laundering and terrorist financing in Switzerland. The authorities will continue to work together to strengthen the country’s defenses against these threats.

Conclusion

Switzerland remains committed to combating money laundering and terrorist financing, and will continue to prioritize effective systems for preventing these crimes.