Switzerland Enhances Anti-Money Laundering Measures to Combat Financial Terrorism
Switzerland has taken significant steps to strengthen its anti-money laundering (AML) and counter-terrorist financing regime, demonstrating its commitment to maintaining the integrity of its financial centre.
Introduction of a Federal Register of Beneficial Owners
To combat money laundering and terrorist financing more effectively, Switzerland has introduced a federal register of beneficial owners of legal entities. This measure aims to ensure that all companies operating in Switzerland have transparent ownership structures, making it easier to identify potential criminal activity.
Due Diligence Requirements for High-Risk Activities
The country has also implemented due diligence requirements for high-risk activities in the legal professions. This includes regular updates on client data and enhanced supervision of precious metals transactions.
Revised Anti-Money Laundering Act
Recent revisions to the Anti-Money Laundering Act have strengthened Switzerland’s defence mechanism against financial terrorism. The revised act requires financial intermediaries to provide information on beneficial ownership and update client data regularly, promoting transparency in associations and strengthening supervision and controls for precious metals.
International Cooperation
Switzerland actively participates in international cooperation against money laundering and terrorist financing through its membership in the Financial Action Task Force (FATF). The country is subject to regular evaluations by the FATF, which assesses compliance with international standards.
Interdepartmental Coordinating Group on Combating Money Laundering and Financing of Terrorism
The Federal Council has established an interdepartmental coordinating group (CGMF) to coordinate efforts across various government agencies. The CGMF publishes reports on the national assessment of risks related to money laundering and terrorist financing, providing valuable insights into these issues.
FATF’s Fourth Follow-up Report
The FATF has published Switzerland’s fourth follow-up report, which highlights the country’s efforts to address previous shortcomings identified in its mutual evaluation in 2016. This report acknowledges Switzerland’s progress in combating money laundering and terrorist financing.
Conclusion
Switzerland’s commitment to combating financial terrorism is unwavering, as evidenced by its ongoing efforts to adapt its laws and regulations to international standards. By maintaining a clean financial centre, Switzerland can continue to support sustainable growth and protect its citizens from the negative consequences of financial crime.
Key Takeaways
- Switzerland has strengthened its anti-money laundering regime through several measures.
- The country has introduced a federal register of beneficial owners and due diligence requirements for high-risk activities.
- Recent revisions to the Anti-Money Laundering Act have promoted transparency in associations and strengthened supervision and controls for precious metals.
- Switzerland actively participates in international cooperation against money laundering and terrorist financing through its membership in the FATF.