Combating financial crime
Thanks to effective anti-money laundering legislation, the Swiss franc offers no protection to anyone seeking to hide ill-gotten assets in Switzerland.© Swissmint
Switzerland participates at the front lines internationally in the fight against cross-border financial crime, and it has potent mechanisms at its disposal for combating money laundering and the funding of terrorism. For example, it actively participates in the Financial Action Task Force (FATF). Through its efforts and successes against corruption and terrorism, the FATF contributes to the integrity of the financial centre.
The Anti-money Laundering Act requires that banks and other financial institutions follow extensive due diligence procedures. This includes identification of the contracting party and the origins of the money placed in their accounts. In cases where money laundering is suspected, the banks must notify the authorities and sequester any suspected money. These same instruments are used to combat terrorist funding.
Undesirable money
Swiss banking secrecy offers no protection for assets acquired illegally by dictators, potentates, and other politically exposed persons. The days of Marcos, Abacha, Mobutu and the like are long gone. Switzerland does not have any anonymous numbered bank accounts and has enacted effective legislation both to protect its financial centre against such unwelcome assets and to ensure the transparent return of such funds to their country of origin. Its efforts rely on preventive measures and legal redress.
By introducing legislation to protect its financial centre against the influx of such funds, Switzerland was pioneering. Since then Swiss regulation has proved itself to be extremely efficient. In the last 15 years, Switzerland has sequestered some CHF 1.7 billion and returned it to the appropriate states – considerably more than any other financial centre.
International cooperation
Switzerland belongs to international bodies such as the Financial Action Task Force (FATF) and the UN, which are actively involved in the fight against money laundering, corruption and illegal funds. Switzerland’s regulatory framework to preserve its integrity is based on internationally recognised standards.
Links to other websites
- The fight against money laundering Swiss Bankers Association
- Combating money laundering and terrorist financing Federal Department of Finance
- Financial Action Task Force (FATF)