Money laundering in Switzerland is defined as an activity that aims to disappoint the source, trace, or loss of assets that someone should know or receive from a criminal or qualified tax offense.
Switzerland is a more peaceful, prosperous, and stable modern market economy than Western European economies with low unemployment, high skilled labor, and per capita gross domestic product (GDP). Money laundering in Switzerland is a growing problem despite the strength of the Swiss economy. Reports show that criminals are trying to generate income from a wide range of illegal activities in Switzerland, such as financial crime, drug trafficking, arms trafficking, organized crime, and corruption.
Switzerland is a major international financial center with illegal financial activities. Historically, foreign drug trafficking organizations, mostly based in Russia, the Balkans, and Eastern Europe, have dominated attempts to laundering narcotics money laundering operations in Switzerland, which has made progress in the implementation of KYC procedures in the financial sector. Nevertheless, surveillance needs to be improved on new players in the financial industry, as well as actors sensitive to money laundering. The latest Swiss government's June 2017 intention statement acknowledges that the scope of the AML measures for all relevant actors should be increased, and the Swiss regime should be strengthened against criminal activities.
The Anti-Money Laundering Regulation sets out the requirements for the professional practice of financial intermediation and due diligence obligations and reporting tasks that investors must meet.
The government applies its meticulous obligations under the Anti-Money Laundering Act not only to financial intermediaries and dealers but also to those who provide specific services related to the formation, management, or administration of companies and foundations. In particular, the Federal Council proposes a new category of individuals, categorized as consultants, who should raise their doubts about money laundering activities by law. The government initially did not want to consider this obligation because of the industry's desire to maintain professional commitments.
Switzerland has strict regulations to prevent money laundering and terrorist financing. The Secretariat implements the international standards of the Financial Action Task Force (FATF), an international specialist unit located in the OECD. Swiss law is, therefore, mainly in line with the international recommendations of the Financial Action Task Force (FATF).
Switzerland was one of the first countries to take anti-money laundering measures. Swiss anti-money laundering mechanisms were established in 1977 with the Due Diligence Agreement (CDB). They had been expanding ever since Swiss banks' due diligence (CDB). With the Code of Conduct Agreement, Switzerland has been a pioneer in identifying contracting parties and identifying stakeholders. CDB is one of the main pillars in the fight against money laundering.
Switzerland has significant AML legislation, and its banks and other financial intermediaries are subject to reporting requirements for Know Your Customer (KYC). Sanction Scanner is an AML Compatibility Software. Sanction Scanner meets the AML needs of financial institutions in Switzerland with advanced AML solutions. You can contact us to get information about our AML Solutions.