Switzerland Takes Aim at Financial Terrorism with New Report on Money Laundering and Terrorist Financing Risks
The Swiss Federal Department of Finance has published its second report on the national evaluation of the risks of money laundering and terrorist financing in Switzerland. The report provides an update on the country’s efforts to combat these threats, highlighting both progress and areas for improvement.
Ongoing Risk of Money Laundering
Despite improvements to its regulatory toolkit, Switzerland remains exposed to the risk of money laundering. The financial centre’s international connections make it a prime target for money launderers seeking to hide assets derived from predicate offences committed abroad. Recent high-profile cases have only served to underscore this threat, with large sums and complex transactions involved.
Increased Risk in Three Areas
The report identifies three areas where risk has increased since 2015:
- Online Casinos: Switzerland has recently authorized online casinos, which have introduced new risks to the financial system.
- Terrorist Financing: The country is also at risk of being used as a conduit for terrorist financing activities.
- Crypto Assets: The rapid growth and popularity of crypto assets have introduced new risks to the financial system.
Efforts to Combat Financial Terrorism
Despite these challenges, the Swiss authorities are committed to prioritizing effective systems for money laundering and combating terrorist financing. The report outlines legislative provisions implemented over the past few years to improve the country’s toolkit for combating these threats, and promises continued review and improvement of these systems.
Collaboration is Key
The report is a wake-up call for Switzerland to remain vigilant in its efforts to combat financial terrorism. It highlights the need for ongoing cooperation between authorities and industry stakeholders. As the Swiss government continues to monitor and adapt its approach, one thing is clear: the fight against financial terrorism will require sustained effort and collaboration to ensure the country’s financial system remains secure.