FATF recognises Switzerland's progress in strengthening its anti-money laundering and counter-terrorist financing measures

Bern, 19.10.2023 - On 19 October 2023, the Financial Action Task Force (FATF) published Switzerland's fourth follow-up report subsequent to the country's last mutual evaluation in 2016. The FATF acknowledges the progress made by Switzerland, especially with the revision of the Anti-Money Laundering Act (AMLA) adopted in March 2021. Nevertheless, further improvements are needed in a number of key areas to ensure a high level of integrity in the financial centre.

Maintaining an effective system for combating financial crime is essential to ensure the integrity and thus the lasting success of an internationally important, secure and future-oriented financial centre and business location. In this regard, the Federal Department of Finance (FDF) can count on the substantial commitment of all Swiss authorities involved in anti-money laundering and counter-terrorist financing efforts.

The recognition of Switzerland's progress by the FATF, the leading intergovernmental body in this area, is an important achievement for the country. In 2016, the FATF had identified major shortcomings in the implementation of 9 of its 40 recommendations. Switzerland has since managed to largely remedy the shortcomings concerning 6 recommendations, including the one on customer due diligence, thanks in particular to amendments to the AMLA.

To ensure the integrity of the financial centre, the Federal Council believes that further measures are necessary, especially in the area of transparency of legal entities and advisory activities (particularly legal advice) in connection with the structuring of companies and trusts. Standards are also continuously evolving at the international level. For example, the FATF has extensively revised its standard on the transparency of legal persons. On 30 August 2023, the Federal Council launched the consultation on a proposal for the introduction of a register of beneficial owners and due diligence requirements for high-risk activities in legal professions. The consultation on the bill will last until 29 November 2023. The next FATF mutual evaluation of Switzerland is expected to take place in 2027/2028, when Switzerland's system will once again be comprehensively re-evaluated.

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