Financial Crime World

Here is the converted article in markdown format:

Switzerland Takes a Leading Role in Combating Financial Crime, Corruption, and Tax Evasion

Switzerland’s financial center has long been recognized as one of the world’s most important, with a strong international focus. To mitigate the risks associated with illicit financial flows, Switzerland has committed to international standards aimed at combating financial crime, tax evasion, money laundering, and corruption.

Implementing International Standards

In recent years, Switzerland has made significant strides in implementing these standards, transposing them into national law, and enforcing them effectively. The country’s development cooperation efforts have also focused on strengthening institutions in developing countries to combat illicit financial flows.

Key Initiatives

  • Automatic Exchange of Financial Account Information (AEOI): Switzerland has participated in AEOI since 2017, signing agreements with over 100 partner states, including emerging and developing countries. In 2021, Switzerland transmitted data on approximately 4 million financial accounts to its 96 partner states.
  • Administrative Assistance in Tax Matters: Switzerland provides administrative assistance in tax matters, responding to over 3,000 requests from other countries between 2019 and 2021. The country’s implementation of international administrative assistance in tax matters has been rated as “largely compliant” by the Global Forum on Transparency and Exchange of Information for Tax Purposes.

Switzerland also plays a crucial role in legal assistance, cooperating with foreign authorities to combat cross-border crime in cases such as Petrobras (Brazil) and 1MDB (Malaysia). The country’s anti-money laundering and countering the financing of terrorism (AML/CFT) framework has been strengthened, with the Financial Action Task Force (FATF) certifying Switzerland’s system as generally robust and effective.

Preventing Base Erosion and Profit Shifting

Switzerland’s efforts to prevent base erosion and profit shifting by companies include participation in the OECD’s Base Erosion and Profit Shifting (BEPS) project. The country implements BEPS minimum standards, requiring large multinationals to disclose their global breakdown of turnover and taxes paid. Switzerland currently exchanges this information with over 60 partner states.

Extractive Sector Transparency

In the extractive sector, Switzerland supports the Extractive Industries Transparency Initiative (EITI), funding and representing the organization on its board. The revised Swiss company law requires large companies operating in the extractive sector to disclose payments made to government agencies exceeding CHF 100,000.

Asset Recovery and Anti-Corruption Efforts

Switzerland’s asset recovery efforts are another critical area where the country plays a leading role. The country has returned over USD 2 billion to affected populations in countries such as Nigeria, the Philippines, Peru, Angola, and Kazakhstan since the 1990s.

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

Conclusion

In conclusion, Switzerland’s commitment to combating financial crime, corruption, and tax evasion is evident through its participation in international initiatives, implementation of national standards, and cooperation with foreign authorities. The country’s efforts have yielded significant results, including the recovery of over USD 2 billion in assets and the strengthening of institutions in developing countries.