|
|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
Switzerland is a major international financial center. Reporting
indicates that criminals attempt to launder illegal proceeds in
Switzerland from a wide range of criminal activities conducted
worldwide. These illegal activities include, but are not limited to,
financial crimes, narcotics trafficking, arms trafficking, organized
crime, terrorist financing and corruption. Although both Swiss and
foreign individuals or entities launder money in Switzerland,
foreign narcotics trafficking organizations, often based in Russia,
the Balkans, Eastern Europe, South America and West Africa,
dominate the narcotics-related money laundering operations in
Switzerland.
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: NO
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Banks; securities and insurance brokers;
money exchangers or remitters; financial management firms;
investment companies; insurance companies; casinos; and
individuals acting as intermediaries in bank lending, money
transactions, or trading of currencies, or providing wealth
management and investment advice services
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 1,159 in 2010
Number of CTRs received and time frame: Not applicable
STR covered entities: Banks; securities and insurance brokers;
money exchangers or remitters; financial management firms;
casinos; and individuals acting as intermediaries in bank lending,
money transactions, trading of currencies or providing wealth
management and investment advice services
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: 360 in 2010
Convictions: 219 in 2010
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Switzerland is a member of the Financial Action Task Force
(FATF). Its most recent mutual evaluation can be found here: http:
//www.fatf-gafi.org/dataoecd/53/52/43959966.pdf
Enforcement and implementation issues and comments:
Because there are no laws for declaration of currency and
monetary instruments, Swiss authorities cannot effectively
conduct bulk cash investigations.
The number of suspicious activity reports increased by 29% from
2009 to 2010, to 1,159 reports encompassing a total of CHF 850
million (approximately $962 million), compared to CHF 2.2 billion
(approximately $2.3 billion) in 2009. In 2010, 13 reports were
related to terrorism finance, amounting to CHF 23 million
(approximately $26 million).
The country’s central geographic location, relative political, social,
and monetary stability, the range and sophistication of financial
services it provides, and its long tradition of bank secrecy not only
contribute to Switzerland’s success as a major international
financial center, but also continue to expose Switzerland to
potential money laundering abuse. This potential is exacerbated
by the current lack of adequate regulation of some potential
means of facilitating money laundering, such as real estate,
jewelry, luxury cars, works of art, and commodities like oil and gas.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
Switzerland is both a consumer market and transit route for illicit
narcotics, but it is not a significant producer of illicit drugs. Federal
Police believe that the majority of drug smugglers are legal and
illegal immigrants, belonging to Swiss-based foreign criminal
networks from Africa and the Balkans. The Swiss public continues
its strong support for the government’s four-pillar
counternarcotics policy of preventive education, treatment, harm
reduction, and law enforcement.
In a country of approximately 7.7 million people, about half a
million Swiss residents are thought to use cannabis at least
occasionally. Roughly 30,000 people are addicted to heroin
and/or cocaine, and more than 7 percent of the population uses a
narcotic substance regularly. The latest estimates in 2007 show
that 1.8 percent of the Swiss population above the age of 15 has
consumed ecstasy at least once. Around 2.8 percent has used
cocaine and, 0.7 percent has had experience with heroin.
Cannabis, cocaine, and heroin still remain popular among drug
addicts. Swiss police suggest that cocaine consumption is on the
rise and remains the second most consumed drug following
cannabis. Young drug addicts between 18-24 years of age are
the largest users of amphetamines, LSD and ecstasy. Police are
also concerned about the continuing trend by casual users to mix
cannabis with other drugs.
A zero tolerance law against driving while under the influence of
drugs (cannabis, heroin, cocaine, ecstasy) entered into effect on
January 1, 2005. Currently, there is a broad consensus among
political parties that there should be no legalization of narcotics.
Switzerland is a party to the 1988 UN Drug Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Switzerland is primarily a destination and, to a lesser extent, a
transit country for women and children subjected to sex trafficking
and children forced into begging and theft. The majority of
identified trafficking victims were forced into nude dancing and
prostitution and originated from Eastern Europe, including
Hungary, Romania, and Bulgaria. Victims from Latin America,
Asia, and Africa are also exploited in Switzerland. In 2010, officials
and NGOs reported an increase in the number of women in
prostitution and children forced into begging from other parts of
Europe, especially Hungary, Romania, and Bulgaria, many of
whom were ethnic Roma. During the reporting period, officials
took steps to address concerns that Swiss law does not prohibit
prostitution by children aged 16 and 17 under all circumstances.
While the majority of trafficking victims are found in Swiss urban
areas, police and NGOs have encountered small numbers of
victims in bars in rural areas in recent years. There reportedly is
forced labor in the domestic service sector, particularly in foreign
diplomatic households. Swiss federal police assessed the total
number of potential trafficking victims residing in Switzerland as
between 1,500 and 3,000.
The Government of Switzerland does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. The Swiss government took
important steps this year to prohibit the prostitution of children
aged 16 and 17, including a formal commitment at the federal
level to pass a law against the practice. Although the process of
enacting this legislation is underway, it remains legal in several
cantons to benefit financially from the prostitution of children
between 16 and 18 years of age. During the reporting period,
Swiss authorities nearly doubled the number of convicted
trafficking offenders. However, the percent of convicted trafficking
offenders who were sentenced to prison terms was low; 83
percent of convicted offenders were not sentenced to time in
prison.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
The United States worked closely with the Swiss government, the
Swiss Bankers’ Association, the Swiss Interagency
Counterterrorism Task Force, and cantonal law enforcement
authorities on counterterrorism issues. Swiss security services
continued to monitor activities of terrorist groups with a presence
in Switzerland and to coordinate with appropriate U.S.
government officials, though the scope of the coordination is
limited. Swiss law severely restricts the level of information-
sharing possible on banking issues.
On February 1, the Government of Switzerland implemented a bill
incorporating recommendations of the Financial Action Task
Force (FATF). The legislation extended the scope of the federal
law concerning the fight against money laundering in the financial
sector to the fight against terrorist financing.
In 2008, the Government of Switzerland extended for the second
time its ban against al-Qa’ida (AQ) and its associate organizations
for three years. The ban includes not only all activities by the
organization itself, but also all activities in support of the
organization. Approximately US$ 17 million in AQ and Taliban
assets in 25 separate bank accounts remained frozen.
The Swiss government maintained a list of individuals and
organizations connected with international terrorism or terrorist
financing, in accordance with UN lists. On October 13, Switzerland
and other countries co-sponsored a UN workshop in Vienna to
improve domestic and global efforts to prevent terrorism. National
representatives from more than 100 UN Member States, as well
as counterterrorism experts from regional and international
organizations took part in this two-day event. They also
exchanged information on national experiences, challenges, and
lessons learned in order to more effectively link national and
global counterterrorism efforts.
Swiss authorities have thus far blocked about 48 accounts totaling
approximately US$ 20.6 million from individuals or companies
linked to individuals or entities listed pursuant to relevant UN
resolutions. The Swiss Attorney General also separately froze 21
accounts representing about approximately US$ 20.5 million on
the grounds that they were related to terrorist financing.
Counterterrorism activities were carried out by several police
units: The Federal Criminal Police’s Counterterrorism Division
focused on AQ-related cases and employed approximately 20
investigators within two operational units. Of the 130 employees
who worked in the Department for Analysis and Prevention in the
Federal Office for Police, approximately 12 concentrated on
counterterrorism matters, in addition to the roughly 85 cantonal
officers focusing on counterterrorism activities.
The Swiss government does not compile lists of prohibited
organizations. The sole recent exception has been AQ, which is
banned on the basis of UN Security Council decisions. However,
terrorism and membership in a terrorist organization are illegal
and subject to criminal penalties.[7] Due in part to increased
counterterrorism activities in neighboring EU countries, several
terrorist organizations, including the Liberation Tigers of Tamil
Eelam, the Kurdistan Workers’ Party, and the Revolutionary
Armed Forces of Colombia, had a presence in Switzerland.
Switzerland does not extradite persons based solely on their
membership in a terrorist organization.
In May, the Swiss government announced it would take part in an
IMF project aimed at providing technical assistance for developing
countries in the global fight against money laundering and
terrorist financing.
On September 7-8, the United States and Swiss governments co-
hosted an International Bioterrorism Response Coordination
Exercise (called “Black ICE II”) in Montreux. This two-day exercise
was an opportunity for officials from numerous international and
regional organizations and national governments to examine the
critical cooperation and coordination issues that would be
necessary to respond to an international bioterrorism attack.
Black ICE II built on the lessons learned through the original Black
ICE I exercise, also held in Montreux, in September 2006.
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
Switzerland is a major international financial center. Reporting
indicates that criminals attempt to launder illegal proceeds in
Switzerland from a wide range of criminal activities conducted
worldwide. These illegal activities include, but are not limited to,
financial crimes, narcotics trafficking, arms trafficking, organized
crime, terrorist financing and corruption. Although both Swiss and
foreign individuals or entities launder money in Switzerland,
foreign narcotics trafficking organizations, often based in Russia,
the Balkans, Eastern Europe, South America and West Africa,
dominate the narcotics-related money laundering operations in
Switzerland.
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: NO
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Banks; securities and insurance brokers;
money exchangers or remitters; financial management firms;
investment companies; insurance companies; casinos; and
individuals acting as intermediaries in bank lending, money
transactions, or trading of currencies, or providing wealth
management and investment advice services
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 1,159 in 2010
Number of CTRs received and time frame: Not applicable
STR covered entities: Banks; securities and insurance brokers;
money exchangers or remitters; financial management firms;
casinos; and individuals acting as intermediaries in bank lending,
money transactions, trading of currencies or providing wealth
management and investment advice services
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: 360 in 2010
Convictions: 219 in 2010
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Switzerland is a member of the Financial Action Task Force
(FATF). Its most recent mutual evaluation can be found here: http:
//www.fatf-gafi.org/dataoecd/53/52/43959966.pdf
Enforcement and implementation issues and comments:
Because there are no laws for declaration of currency and
monetary instruments, Swiss authorities cannot effectively
conduct bulk cash investigations.
The number of suspicious activity reports increased by 29% from
2009 to 2010, to 1,159 reports encompassing a total of CHF 850
million (approximately $962 million), compared to CHF 2.2 billion
(approximately $2.3 billion) in 2009. In 2010, 13 reports were
related to terrorism finance, amounting to CHF 23 million
(approximately $26 million).
The country’s central geographic location, relative political, social,
and monetary stability, the range and sophistication of financial
services it provides, and its long tradition of bank secrecy not only
contribute to Switzerland’s success as a major international
financial center, but also continue to expose Switzerland to
potential money laundering abuse. This potential is exacerbated
by the current lack of adequate regulation of some potential
means of facilitating money laundering, such as real estate,
jewelry, luxury cars, works of art, and commodities like oil and gas.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
Switzerland is both a consumer market and transit route for illicit
narcotics, but it is not a significant producer of illicit drugs. Federal
Police believe that the majority of drug smugglers are legal and
illegal immigrants, belonging to Swiss-based foreign criminal
networks from Africa and the Balkans. The Swiss public continues
its strong support for the government’s four-pillar
counternarcotics policy of preventive education, treatment, harm
reduction, and law enforcement.
In a country of approximately 7.7 million people, about half a
million Swiss residents are thought to use cannabis at least
occasionally. Roughly 30,000 people are addicted to heroin
and/or cocaine, and more than 7 percent of the population uses a
narcotic substance regularly. The latest estimates in 2007 show
that 1.8 percent of the Swiss population above the age of 15 has
consumed ecstasy at least once. Around 2.8 percent has used
cocaine and, 0.7 percent has had experience with heroin.
Cannabis, cocaine, and heroin still remain popular among drug
addicts. Swiss police suggest that cocaine consumption is on the
rise and remains the second most consumed drug following
cannabis. Young drug addicts between 18-24 years of age are
the largest users of amphetamines, LSD and ecstasy. Police are
also concerned about the continuing trend by casual users to mix
cannabis with other drugs.
A zero tolerance law against driving while under the influence of
drugs (cannabis, heroin, cocaine, ecstasy) entered into effect on
January 1, 2005. Currently, there is a broad consensus among
political parties that there should be no legalization of narcotics.
Switzerland is a party to the 1988 UN Drug Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Switzerland is primarily a destination and, to a lesser extent, a
transit country for women and children subjected to sex trafficking
and children forced into begging and theft. The majority of
identified trafficking victims were forced into nude dancing and
prostitution and originated from Eastern Europe, including
Hungary, Romania, and Bulgaria. Victims from Latin America,
Asia, and Africa are also exploited in Switzerland. In 2010, officials
and NGOs reported an increase in the number of women in
prostitution and children forced into begging from other parts of
Europe, especially Hungary, Romania, and Bulgaria, many of
whom were ethnic Roma. During the reporting period, officials
took steps to address concerns that Swiss law does not prohibit
prostitution by children aged 16 and 17 under all circumstances.
While the majority of trafficking victims are found in Swiss urban
areas, police and NGOs have encountered small numbers of
victims in bars in rural areas in recent years. There reportedly is
forced labor in the domestic service sector, particularly in foreign
diplomatic households. Swiss federal police assessed the total
number of potential trafficking victims residing in Switzerland as
between 1,500 and 3,000.
The Government of Switzerland does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. The Swiss government took
important steps this year to prohibit the prostitution of children
aged 16 and 17, including a formal commitment at the federal
level to pass a law against the practice. Although the process of
enacting this legislation is underway, it remains legal in several
cantons to benefit financially from the prostitution of children
between 16 and 18 years of age. During the reporting period,
Swiss authorities nearly doubled the number of convicted
trafficking offenders. However, the percent of convicted trafficking
offenders who were sentenced to prison terms was low; 83
percent of convicted offenders were not sentenced to time in
prison.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
The United States worked closely with the Swiss government, the
Swiss Bankers’ Association, the Swiss Interagency
Counterterrorism Task Force, and cantonal law enforcement
authorities on counterterrorism issues. Swiss security services
continued to monitor activities of terrorist groups with a presence
in Switzerland and to coordinate with appropriate U.S.
government officials, though the scope of the coordination is
limited. Swiss law severely restricts the level of information-
sharing possible on banking issues.
On February 1, the Government of Switzerland implemented a bill
incorporating recommendations of the Financial Action Task
Force (FATF). The legislation extended the scope of the federal
law concerning the fight against money laundering in the financial
sector to the fight against terrorist financing.
In 2008, the Government of Switzerland extended for the second
time its ban against al-Qa’ida (AQ) and its associate organizations
for three years. The ban includes not only all activities by the
organization itself, but also all activities in support of the
organization. Approximately US$ 17 million in AQ and Taliban
assets in 25 separate bank accounts remained frozen.
The Swiss government maintained a list of individuals and
organizations connected with international terrorism or terrorist
financing, in accordance with UN lists. On October 13, Switzerland
and other countries co-sponsored a UN workshop in Vienna to
improve domestic and global efforts to prevent terrorism. National
representatives from more than 100 UN Member States, as well
as counterterrorism experts from regional and international
organizations took part in this two-day event. They also
exchanged information on national experiences, challenges, and
lessons learned in order to more effectively link national and
global counterterrorism efforts.
Swiss authorities have thus far blocked about 48 accounts totaling
approximately US$ 20.6 million from individuals or companies
linked to individuals or entities listed pursuant to relevant UN
resolutions. The Swiss Attorney General also separately froze 21
accounts representing about approximately US$ 20.5 million on
the grounds that they were related to terrorist financing.
Counterterrorism activities were carried out by several police
units: The Federal Criminal Police’s Counterterrorism Division
focused on AQ-related cases and employed approximately 20
investigators within two operational units. Of the 130 employees
who worked in the Department for Analysis and Prevention in the
Federal Office for Police, approximately 12 concentrated on
counterterrorism matters, in addition to the roughly 85 cantonal
officers focusing on counterterrorism activities.
The Swiss government does not compile lists of prohibited
organizations. The sole recent exception has been AQ, which is
banned on the basis of UN Security Council decisions. However,
terrorism and membership in a terrorist organization are illegal
and subject to criminal penalties.[7] Due in part to increased
counterterrorism activities in neighboring EU countries, several
terrorist organizations, including the Liberation Tigers of Tamil
Eelam, the Kurdistan Workers’ Party, and the Revolutionary
Armed Forces of Colombia, had a presence in Switzerland.
Switzerland does not extradite persons based solely on their
membership in a terrorist organization.
In May, the Swiss government announced it would take part in an
IMF project aimed at providing technical assistance for developing
countries in the global fight against money laundering and
terrorist financing.
On September 7-8, the United States and Swiss governments co-
hosted an International Bioterrorism Response Coordination
Exercise (called “Black ICE II”) in Montreux. This two-day exercise
was an opportunity for officials from numerous international and
regional organizations and national governments to examine the
critical cooperation and coordination issues that would be
necessary to respond to an international bioterrorism attack.
Black ICE II built on the lessons learned through the original Black
ICE I exercise, also held in Montreux, in September 2006.
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| SWITZERLAND |
| KnowYourCountry |
|
___________________________________________________
AML info extracted from IMF Report: Switzerland: 2012 Article
IV Consultation (May 2012)
Recent tax developments have put the private banking industry under
pressure. An international push to broaden cross-border cooperation in
tax compliance is challenging long-standing bank secrecy principles and
practices in the Swiss private banking industry. In an effort to address
legacy issues and improve tax transparency, Switzerland has signed
several withholding tax agreements with other countries, including most
recently with Austria and the U.K. In 2011, a number of Swiss banks
(including one of the two SIBs) have been placed under investigation in
the U.S. for allegedly helping clients evade taxes; one small bank in this
group has been indicted and broke itself up preemptively. To help bring
about a settlement, the Swiss parliament recently broadened the scope
of administrative assistance offered to U.S. tax authorities under the
double taxation agreement (whose ratification is, however, still pending
in the U.S.). Following these developments, the Swiss wealth
management business has seen outflows from European countries and
the U.S., which have been partly offset by inflows from other countries.
An additional development which might have an impact on the sector is
the recent revision of the FATF standards which included tax crimes
among the money laundering offenses. Some consolidation is expected
to take place in the sector.
AML News / Updates
June 26, 2011 - New report by the Global Forum on Transparency and
Exchange of Information to evaluate the country's legal and regulatory
frameworks re exchange of information is made available.
Read Report
June 12, 2011 - Statement on the Economy extracted from the 2011
IMF Report
Read Statement (internal link)
Links:
Meldestelle für Geldwäscherei, Bureau de communication en matière de
blanchiment d'argent, Ufficio di comunicazione in materia di riciclaggio di
denaro,Money Laundering Reporting Office – Switzerland (MROS)
Worldwide AML Legislation (International Bar Association)
AML info extracted from IMF Report: Switzerland: 2012 Article
IV Consultation (May 2012)
Recent tax developments have put the private banking industry under
pressure. An international push to broaden cross-border cooperation in
tax compliance is challenging long-standing bank secrecy principles and
practices in the Swiss private banking industry. In an effort to address
legacy issues and improve tax transparency, Switzerland has signed
several withholding tax agreements with other countries, including most
recently with Austria and the U.K. In 2011, a number of Swiss banks
(including one of the two SIBs) have been placed under investigation in
the U.S. for allegedly helping clients evade taxes; one small bank in this
group has been indicted and broke itself up preemptively. To help bring
about a settlement, the Swiss parliament recently broadened the scope
of administrative assistance offered to U.S. tax authorities under the
double taxation agreement (whose ratification is, however, still pending
in the U.S.). Following these developments, the Swiss wealth
management business has seen outflows from European countries and
the U.S., which have been partly offset by inflows from other countries.
An additional development which might have an impact on the sector is
the recent revision of the FATF standards which included tax crimes
among the money laundering offenses. Some consolidation is expected
to take place in the sector.
AML News / Updates
June 26, 2011 - New report by the Global Forum on Transparency and
Exchange of Information to evaluate the country's legal and regulatory
frameworks re exchange of information is made available.
Read Report
June 12, 2011 - Statement on the Economy extracted from the 2011
IMF Report
Read Statement (internal link)
Links:
Meldestelle für Geldwäscherei, Bureau de communication en matière de
blanchiment d'argent, Ufficio di comunicazione in materia di riciclaggio di
denaro,Money Laundering Reporting Office – Switzerland (MROS)
Worldwide AML Legislation (International Bar Association)
|
| Last Updated: 10 May 2012 |