Recently, Switzerland submitted a report to the FATF outlining the measures it has introduced to improve its system of combating money laundering and terrorist financing since the last FATF evaluation conducted in 2005. The FATF has acknowledged these measures which include the revision of its Anti-Money Laundering Act and the strengthening of preventive measures and its structure of financial market supervision. On 14 October 2009 it therefore decided to end the international monitoring of Switzerland introduced within the scope of the third round of mutual evaluations conducted on a global scale (2004 - 2011).

In future Switzerland will only be subject to a simplified biennial process. This process requires Switzerland to submit regular reports on developments in its system of combating money laundering and terrorist financing with effect from October 2011. As such Switzerland will be among the first countries to be evaluated under this simplified process alongside Italy, Norway and the UK. The FATF nevertheless observed that shortcomings remain, particularly regarding the effectiveness of the system for reporting suspicious transactions, transparency relating to bearer shares as well as in terms of the measures in place to implement international standards on freezing terrorist assets.

The FATF

The Financial Action Task Force (FATF) is the most important intergovernmental body for international cooperation against money laundering and terrorist financing. Its 40 + 9 Recommendations constitute the internationally recognised standards that a country should comply with to ensure effective action against money laundering and terrorist financing. In addition to developing international standards, the FATF has an effective peer review system. The FATF has a flexible structure allowing it to adapt swiftly to international developments and to new threats. It currently has 35 members and 8 FATF style regional bodies, thereby ensuring near global coverage. From the outset, Switzerland has participated actively in the FATF's work.

Address for enquiries:

Ambassador Alexander Karrer, Head of the Monetary Affairs and International Finance Division, Federal Finance Administration, tel. 031 324 95 84.

Riccardo Sansonetti, Head of the Section on Combating International Financial Crime, Federal Finance Administration, Administration, tel. 031 322 62 07.

Publisher:

Federal Department of Finance

Internet: http://www.efd.admin.ch