Measures to combat money laundering and the financing of terrorism and proliferation in Switzerland

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English

French

Country

Switzerland

Mutual Evaluation Report of Switzerland 2016

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mer-switzerland-2016.pdf
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3 MB
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Paris, 7 December 2016 - Overall, Switzerland’s AML/CFT regime is technically robust and has achieved good results. It would still benefit from some improvements in order to be fully effective. 

The FATF conducted an assessment of Switzerland’s anti-money laundering and counter-terrorist financing (AML/CFT) system, based on the 2012 FATF Recommendations. This assessment reviews both the level of effectiveness of Switzerland’s AML/CFT regime  as well as its level of technical compliance with the FATF Recommendations. 

Since its previous FATF assessment in 2005, Switzerland has strenghtened its AML/CFT regime. These efforts rest on a clear political will to promote the integrity of its financial center. In line with this,  legal reforms have taken place in order to meet the requirements of the FATF Recommendation, and to address the significant money laundering risks that Switzerland faces.

On the operational side, law enforcement authorities have demonstrated the effectiveness of their investigative methods and of the mutual legal assistance they provide in the context of international money laundering cases. A number of these investigations related to grand corruption cases and led to the repatriation of considerable amounts to affected countries.

Supervisory authorities continuously monitor financial institutions and regulated non-financial entities following a risk-based approach. The assessment team encourages authorities to strengthen their control with regard to the obligation to report suspicious transactions, in particular for financial institutions. Furthermore, the sanctions applied for failure to comply with AML/CFT requirements, both to natural and legal persons, must be commensurate to the seriousness of the misconduct identified and should prompt other institutions to reconsider their policies when necessary.

Switzerland demonstrates a strong commitment to mutual legal assistance. It should continue to pursue its efforts on all other forms of international cooperation, including on the supervision of financial groups  given the key role of the Swiss financial centre.

Swiss authorities have recently adopted measures to address some of these concerns.  These developments are welcome and Swiss authorities are encouraged to ensure an effective implementation of these new legal provisions.

This report was adopted by the FATF at its October 2016 Plenary meeting (see Outcomes of the Plenary meeting of the FATF, Paris, 19-21 October 2016).

 

Technical Compliance

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

Switzerland - Mutual Evaluation

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
PC
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
PC
R.17 - Reliance on third parties
LC
R.18 - Internal controls and foreign branches and subsidiaries
LC
R.19 - Higher-risk countries
PC
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
PC
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

Effectiveness

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Switzerland - Mutual Evaluation

IO1
SE
IO2
ME
IO3
ME
IO4
ME
IO5
ME
IO6
SE
IO7
SE
IO8
SE
IO9
SE
IO10
SE
IO11
SE

HE = high level of effectiveness   |   SE = substantial level of effectiveness    |   ME = moderate level of effectiveness   |   LE = low level of effectiveness

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