Switzerland progressing in fight against money laundering: Financial Action Task Force

Financial Action Task Force also said the assistance provided by Switzerland is "generally satisfactory and has involved the freezing and restitution of large sums linked with international corruption".

London/Berne, Dec 7: Long accused of providing safe haven to black money from India and other nations, Swiss banks are exposed to high money laundering risk with regard to overseas assets but authorities are showing a “clear commitment” to check the menace, a panel said today. Financial Action Task Force, an inter-governmental body set up to check money laundering, terrorist financing and financing of proliferation of weapons of mass destruction, also said the assistance provided by Switzerland is “generally satisfactory and has involved the freezing and restitution of large sums linked with international corruption”.

At the same time, FATF report flagged “shortcomings associated with maintaining the confidentiality of requests” for information and assistance concerning suspected cases of money laundering. There has been a significant improvement in exchange of information and assistance between India and Switzerland with regard to suspected black money cases. The two countries have also signed a pact for automatic exchange of information on tax matters, which will come into force in 2018 and facilitate auto-sharing of details about people with suspected black money in Swiss banks 2019 onwards. Switzerland is a major international financial centre.

In 2014, total assets managed by Swiss banks stood at USD 6.74 trillion, half of which belonged to foreign customers, and is about 4.1 per cent of global assets under management. The country is also the global leader for cross-border private banking, with around a quarter of all global assets under cross-border management (2.38 trillion Swiss franc). Commenting on the Anti-Money Laundering and Counter- Terrorist Financing Measures Taken By Switzerland report, the Swiss government said it has received “good marks” overall and has achieved “an above-average result compared to those countries already reviewed”.

It added: “The FATF acknowledges the quality of the Swiss system for combating money laundering and terrorist financing. In its report, it made a series of recommendations to improve Swiss legislation and its implementation.” The new report reflects the progress that Switzerland has made since the last complete mutual evaluation report published in 2005. “It is based on a clear, political will to enhance the integrity of Switzerland’s financial centre and the strong commitment of the authorities concerned,” it said.