Anti-Money Laundering: Progress Made And Gaps In Swiss Measures

Switzerland has made distinct progress in its combat against money laundering. Yet there are still significant gaps. Switzerland was the trailblazer in the fight against money laundering in the 1990s, but it is now following in midfield. Implementation is still at a high level, but when it comes to the non-banking sector and the reporting of suspect cases, the Swiss Anti-Money Laundering Act (AMLA) still has considerable shortcomings. The standard is higher in the banking sector precisely because the internationally active banks must conform to more than just the Swiss AMLA.

The international anti-money laundering standard is laid out in the 40 Recommendations of the Financial Action Task Force on Money Laundering (FATF). These FATF Recommendations list the persons and entities that should be subject to money laundering legislation. In addition to banks and insurance companies, these include a range of other players such as accountants, tax advisers, notaries, lawyers, trust and company service providers, real estate brokers, traders (if substantial cash payments are involved) and casinos.

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