Financial Crime World

Combating the Financing of Terrorism in Switzerland: A Step Towards a Safer Financial Centre

Progress and Challenges in Combating Financial Crime and Terrorism Financing

The Financial Action Task Force (FATF) has praised Switzerland’s progress in combating financial crime and terrorism financing, but emphasized the need for further action to ensure a high level of integrity in the financial sector. The country’s fourth follow-up report, published on October 19, highlights the improvements made since its last mutual evaluation in 2016.

Efforts and Achievements

The FATF acknowledged Switzerland’s efforts, particularly with the revision of the Anti-Money Laundering Act (AMLA) adopted in March 2021. Switzerland has made significant progress since 2016, largely addressing shortcomings in six recommendations, including customer due diligence.

Areas for Improvement

However, more needs to be done to address key areas, including:

  • Transparency of legal entities
  • Advisory activities related to company structuring and trusts

These areas require further attention to ensure the integrity of Switzerland’s financial centre.

Federal Department of Finance’s Commitment

The Federal Department of Finance (FDF) can count on the commitment of all Swiss authorities involved in anti-money laundering and counter-terrorist financing efforts. The department is working to address the outstanding issues and maintain an effective system for combating financial crime.

Consultation on Register of Beneficial Owners and Due Diligence Requirements

The Federal Council has launched a consultation on a proposal for the introduction of:

  • A register of beneficial owners
  • Due diligence requirements for high-risk activities in legal professions

The consultation will run until November 29, 2023, and is expected to inform Switzerland’s next FATF mutual evaluation in 2027/2028.

International Cooperation

In its efforts to combat financial crime and terrorism financing, Switzerland can count on the support of the international community. As a leading intergovernmental body, the FATF plays a critical role in setting standards for combating financial crime and promoting cooperation among countries. Switzerland’s commitment to implementing these standards is essential for maintaining its position as a secure and reliable financial centre.

Contact Information

For more information, please contact:

  • State Secretariat for International Finance at tel. +41 58 462 46 16 or info@si.admin.ch