How Switzerland supports the fight against financial crime, corruption and tax evasion, and works in the area of asset recovery
- The Swiss financial centre is one of the world's most important and has a strong international focus.
- Switzerland has taken many steps to mitigate the risks as far as possible.
- Switzerland recognises the problem of illicit financial flows[1] and has committed to international standards to combat financial crime, tax evasion, money laundering and corruption.
- In recent years, Switzerland has made a substantial contribution to the development of international standards, which it then transposes into national law and enforces effectively.
- As part of its development cooperation, Switzerland has long supported programmes in developing countries to strengthen the institutions that counter illicit financial flows.
Automatic exchange of information on financial accounts(AEOI)
Switzerland has participated in the AEOI mechanism since 2017 and has signed AEOI agreements with over 100 partner states, including emerging and developing countries. In principle, Switzerland applies AEOI with all states and territories which meet the requirements of the OECD (particularly regarding the legal basis required for implementation, as well as confidentiality and data security) and which have expressed an interest in implementing AEOI with Switzerland. In 2024, it transmitted data on some 4 million financial accounts to its 108 partner states.
Administrative assistance
Within the framework of administrative assistance in tax matters, tax authorities provide tax-related information in accordance with the international standard. Switzerland's network for tax-related administrative assistance upon request currently comprises almost 150 states and territories. From 2023-2024, Switzerland responded to over 2,800 requests. In March 2020, the Global Forum on Transparency and Exchange of Information for Tax Purposes rated Switzerland's implementation of international administrative assistance in tax matters as "largely compliant".
As part of its official assistance in the area of financial market supervision, FINMA can request information and documents from foreign financial market supervisory authorities. Conversely, foreign authorities also approach FINMA with several hundred international requests for administrative assistance each year. This is the case, for example, if a person has committed market abuse on a foreign stock exchange based on their client relationship with a Swiss bank. FINMA thus makes a relevant contribution to global efforts to combat market abuse.
Legal assistance
Within the framework of international mutual legal assistance, the Swiss judicial authorities cooperate with their counterparts abroad in cases of cross-border crime. This has included some large-scale cases such as Petrobras (Brazil) and 1MDB (Malaysia).
Prevention of base erosion and profit shifting by companies
As an OECD member, Switzerland actively participates in the base erosion and profit shifting (BEPS) project and implements the agreed BEPS minimum standards. These require all large multinationals to disclose the global breakdown of their turnover and taxes paid. Switzerland currently exchanges such information with the tax authorities of over 100 partner states, including emerging economies, and is open to extending this in the future to all states that comply with the international standards. These reports are used for risk analysis by tax authorities.
Information on advance tax rulings is automatically exchanged with countries that have ratified the administrative assistance convention when it is likely to be of interest to the competent foreign authority. This mechanism improves transparency and mitigates BEPS-related risks.
Combating money laundering, terrorist financing, and proliferation financing (ML/TF/PF)
Switzerland has adapted its ML/TF/PF legislation several times in recent years - among others to make it compliant with international standards. The Financial Action Task Force (FATF), which is responsible for this area, has certified on numerous occasions that Switzerland's current system is generally robust and effective. In recent years, Switzerland has strengthened its preventive legal framework, especially in relation to politically exposed persons (PEPs). It has improved the updating of client data and the verification of the identity and transparency of beneficial owners (e.g. by abolishing anonymous bearer shares) and has added tax fraud as a predicate offence. In May 2024, the Federal Council adopted a draft law that, among other things, provides for the establishment of a federal register of the beneficial owners of legal entities and the subjection of legal advisors to due diligence requirements in high-risk transactions. Moreover, the Swiss authorities continue to regularly assess the ML/TF/PF risks faced by Switzerland. The third national assessment of the risks of money laundering, terrorist financing, and proliferation financing is scheduled for 2026. The Money Laundering Reporting Office (MROS) received almost 12,000 suspicious activity reports in 2023, testifying to the high level of awareness in the financial sector. Furthermore, within the framework of international development cooperation, Switzerland supports various global initiatives to strengthen AML/CFT capacity in recipient countries.
Extractive sector
Switzerland supports the Extractive Industries Transparency Initiative (EITI) through funding and representation on the EITI Board. The revised Swiss company law now requires large companies operating in the extractive sector to disclose payments of more than CHF 100,000 made to government agencies. In addition, by means of the progress reported in 2023, the Federal Council reaffirmed Switzerland's commitment, particularly through cooperation programmes with developing and Eastern European countries that have an extractive industry and in relation to AML/CFT efforts.
Asset recovery
If – despite the comprehensive preventive measures in place – assets originating from offences listed in the United Nations Convention against Corruption (corruption, money laundering, etc.) enter the Swiss financial sector, Switzerland is prepared to provide assistance, within the framework of mutual legal assistance in criminal matters, to freeze these assets with a view to their confiscation and, where appropriate, their return. Switzerland has acquired considerable experience and achieved concrete results in the area of asset return. Over the past thirty years, Switzerland has returned more than USD 2 billion to the benefit of affected populations in countries such as Nigeria, the Philippines, Peru, Angola and Kazakhstan. Its pioneering role in this field is internationally recognised. This restitution mechanism is an important pillar of Swiss anti-corruption policy.
Further information can be found on the website of the Federal Department of Foreign Affairs (FDFA), see link.
Anti-corruption
Switzerland is actively involved in several international anti-corruption efforts, such as the United Nations Convention against Corruption, the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the Criminal Law Convention on Corruption of the Council of Europe, and the G20 anti-corruption working group. Switzerland also engages in anti-corruption dialogue with international sports federations. In addition, the Federal Council has adopted an anti-corruption strategy that selectively expands the existing instruments in this area.
Moreover, in its development cooperation, Switzerland contributes to strengthening anti-corruption and financial supervisory authorities and the International Organization of Supreme Audit Institutions (INTOSAI). Furthermore, close cooperation with foreign investigative agencies and the analysis of suspicious activity reports by Switzerland's financial intelligence unit (MROS) have helped in the detection of several international corruption cases.
Institutional strengthening and capacity development
Capacity development helps to strengthen state institutions in developing and emerging countries. Switzerland supports the Global Forum's 2017 plan of action to assist developing countries in building the necessary capacity for the automatic exchange of information (human resources, IT infrastructure, legal framework, risk management). Switzerland also makes financial contributions to the IMF's AML/CFT Topical Trust Fund, the OECD in connection with the BEPS project and the Global Forum on Transparency and Exchange of Information for Tax Purposes, the Inter-American Center of Tax Administrations (CIAT), the African Tax Administration Forum (ATAF) and the World Bank's Global Tax Programme (GTP), among others, thereby giving developing countries a voice in international tax discussions. The Swiss Tax Programme for Development (STP4D) will continue SECO's successful work to date in the area of taxation in developing countries. Until 2028, Switzerland will provide up to CHF 28.5 million to support developing countries in reforming their tax systems. This was decided by the Federal Council on 18 October 2023.
[1] In the absence of an internationally recognised definition, Switzerland uses the French term "flux financiers illicites" and the German term "illegale Finanzflüsse" for the English term "illicit financial flows". These terms are used to describe legally prohibited activities.