Switzerland’s progress in strengthening measures to tackle money laundering and terrorist financing

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Follow Up Report Switzerland January 2020

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Follow-Up-Report-Switzerland-2020.pdf
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Paris, 13 February 2020 - Since the 2016 assessment of Switzerland’s measures to tackle money laundering and terrorist financing, the country has taken a number of actions to strengthen its framework.

Switzerland has been in an enhanced follow-up process following the adoption of its 2016 Mutual Evaluation.

To reflect Switzerland’s progress, the FATF has now re-rated the country on the following Recommendations:

  • Recommendation 16 - Wire transfers, from partially compliant to largely compliant
  • Recommendation 19 - Higher-risk countries, from partially compliant to compliant
  • Recommendation 33 – Statistics, from partially compliant to compliant

The report also looks at whether Switzerland’s measures meet the requirements of FATF Recommendations that have changed since the 2016 mutual evaluation. The FATF agreed to rerate Recommendation 8 (Non-profit organisations) from partially compliant to largely compliant. The FATF agreed to maintain the rating of largely compliant for Recommendation 2 (National cooperation and coordination), Recommendation 5 (Terrorist financing offence), Recommendation 15 (New technologies) including virtual asset service providers (VASPs), Recommendation 18 (Internal controls and foreign branches and subsidiaries) and Recommendation 21 (Tipping-off and confidentiality). 

The FATF also maintained the rating of compliant for Recommendation 7 (Targeted financial sanctions related to proliferation).

Switzerland is rated compliant on 8 Recommendations and largely compliant on 27 Recommendations.  It is remains partially compliant on 5 Recommendations.

Switzerland will continue to report back to FATF on its progress.

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Switzerland - Follow-Up Report 2020

R.1 - Assessing risk & applying risk-based approach
LC
R.2 - National cooperation and coordination
LC
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
LC
R.5 - Terrorist financing offence
LC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
LC
R.7 - Targeted financial sanctions related to proliferation
C
R.8 - Non-profit organisations
LC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
PC
R.11 - Record keeping
C
R.12 - Politically exposed persons
LC
R.13 - Correspondent banking
LC
R.14 - Money or value transfer services
C
R.15 - New technologies
LC
R.16 - Wire transfers
LC
R.17 - Reliance on third parties
LC
R.18 - Internal controls and foreign branches and subsidiaries
LC
R.19 - Higher-risk countries
C
R.20 - Reporting of suspicious transactions
LC
R.21 - Tipping-off and confidentiality
LC
R.22 - DNFBPs: Customer due diligence
PC
R.23 - DNFBPs: Other measures
PC
R.24 - Transparency and beneficial ownership of legal persons
LC
R.25 - Transparency and beneficial ownership of legal arrangements
LC
R.26 - Regulation and supervision of financial institutions
LC
R.27 - Powers of supervisors
LC
R.28 - Regulation and supervision of DNFBPs
LC
R.29 - Financial intelligence units
C
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
LC
R.32 - Cash couriers
LC
R.33 - Statistics
C
R.34 - Guidance and feedback
LC
R.35- Sanctions
PC
R.36 - International instruments
LC
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
LC
R.40 - Other forms of international cooperation
PC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

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