Financial Crime World

Here is the converted article in markdown format:

Switzerland Takes Action Against Financial Crime and Corruption

The Swiss financial sector, one of the world’s most important hubs, has taken significant steps to combat financial crime, corruption, and tax evasion. The country has committed to international standards to prevent illicit financial flows and has made substantial contributions to developing countries to strengthen their institutions.

Automatic Exchange of Financial Account Information

Switzerland has been a key player in the automatic exchange of financial account information (AEOI) since 2017, signing agreements with over 100 partner states. In 2021, it transmitted data on approximately 4 million financial accounts to its 96 partner countries.

Administrative Assistance

The country’s tax authorities have provided more than 3,000 requests for administrative assistance in tax matters between 2019 and 2021, making Switzerland one of the most cooperative countries in this area. The Global Forum on Transparency and Exchange of Information for Tax Purposes rated Switzerland’s implementation as “largely compliant” in March 2020.

Swiss judicial authorities have cooperated with international partners to combat cross-border crime, including large-scale cases such as:

  • Petrobras (Brazil)
  • 1MDB (Malaysia)

Prevention of Base Erosion and Profit Shifting

As an OECD member, Switzerland actively participates in the base erosion and profit shifting project and implements agreed minimum standards. The country exchanges information with over 60 partner states, including emerging economies, to prevent tax evasion.

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

Switzerland has adapted its AML/CFT legislation several times in recent years to comply with international standards. The Financial Action Task Force (FATF) has certified Switzerland’s system as robust and effective, and the country continues to assess AML/CFT risks.

Extractive Sector

Switzerland supports the Extractive Industries Transparency Initiative (EITI) through funding and representation on the EITI board. The country also assists developing countries in implementing anti-corruption measures in the extractive sector.

Asset Recovery

If assets originating from corruption or other crimes enter Switzerland’s financial sector, the country provides assistance to freeze and confiscate them, with the goal of returning them to their rightful owners. Switzerland has returned over USD 2 billion to affected populations worldwide since the 1990s.

Anti-Corruption Efforts

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

  • G20 anti-corruption working group
  • United Nations Convention against Corruption

The country also engages in anti-corruption dialogue with international sports federations and contributes to strengthening anti-corruption authorities in developing countries.