Combating the Financing of Terrorism: Switzerland Takes Action to Reduce Risks
Introduction
The Swiss Federal Council has acknowledged a report on the national assessment of money laundering and terrorist financing risks in the country. The report, drawn up by an interdepartmental working group, highlights that Switzerland is not immune to financial crime and remains an attractive location for laundering proceeds from foreign crimes.
Main Threats to the Swiss Financial Sector
- Fraud
- Embezzlement
- Corruption
- Participation in criminal organizations
The overall risk assessment indicates a medium risk level across all areas covered by the Anti-Money Laundering Act (AMLA), with specific vulnerabilities identified in certain sectors.
Sectors at Higher Risk
- Universal banks
- Private banking
- Asset management
- Legal professions
- Fiduciary business
- Money and asset transfer services
Sectors with Lower Risks
- Insurance
- Casinos
- Credit services
Terrorist Financing Risks
The analysis reveals a limited risk, but warns that this could increase if terrorist networks exploit alternative money transfer systems in Switzerland more systematically.
Vulnerable Sectors
- Banks
- Money transmitting service providers
Recommendations for Improvement
- Promoting dialogue between the public and private sectors
- Developing and systemizing statistics
- Providing specific recommendations for future analyses
The interdepartmental coordinating group on combating money laundering and terrorist financing (CGMT) has been tasked with coordinating these efforts and ensuring continuous risk assessment to identify new threats and recommend mitigation measures.
International Cooperation
Switzerland is working closely with other nations and international organizations to share intelligence, best practices, and expertise in this area.
Ongoing Process
The national risk analysis is an ongoing process, with the report being updated and supplemented by other reports and analyses to ensure that Switzerland’s system remains effective in addressing new threats and reducing risks.
Contact Information
- Mario Tuor, Communications, State Secretariat for International Financial Matters +41 58 462 46 16 mario.tuor@sif.admin.ch
Documents
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