Ethics group urges tougher Swiss action over money-laundering
Swiss prosecutors should enforce laws against money-laundering more effectively as the country remains a soft touch for corporate financial corruption, an ethics group said on Friday.
The Swiss branch of Transparency International said there had been just 10 documented convictions for money laundering and related corruption, carried out in the context of companies' business transactions, under laws that came into effect in 2003.
By contrast roughly every fifth Swiss exporter had made "informal (corrupt) payments abroad," it said, citing research carried out in 2012.
Of the firms convicted and fined, all had business interests abroad, but Transparency Switzerland's criticisms also applied to domestic firms, its head Martin Hilti told Reuters. None were banks.
Switzerland now routinely exchanges bank account information with over 100 countries, having fought to dispel its old image as a place for criminals to stash illicit gains.
But it has faced international pressure to shed more light on corporate ownerships, and in October announced plans to create a central registry of legal entities to combat money-laundering via shell companies.
Transparency Switzerland, part of a global network with a presence in more than 100 countries, acknowledged that Swiss authorities were dependent on the cooperation of firms suspected of money-laundering to bring those same firms to justice.
But the judicial transparency and security needed to underpin that cooperation was lacking, it said.
State prosecutors therefore needed to clamp down harder on perpetrators, said Hilti.
"Having a properly functioning penal system is essential to prevent and combat corruption and money-laundering," he said in a statement.
"Leaving foreign authorities obliged to launch prosecutions against Swiss companies paints a poor image of our country."
The cantonal prosecutors office in Zurich did not respond to a Reuters request for comment on the Transparency Switzerland report.
By contrast roughly every fifth Swiss exporter had made "informal (corrupt) payments abroad," it said, citing research carried out in 2012.
Of the firms convicted and fined, all had business interests abroad, but Transparency Switzerland's criticisms also applied to domestic firms, its head Martin Hilti told Reuters. None were banks.
Switzerland now routinely exchanges bank account information with over 100 countries, having fought to dispel its old image as a place for criminals to stash illicit gains.
But it has faced international pressure to shed more light on corporate ownerships, and in October announced plans to create a central registry of legal entities to combat money-laundering via shell companies.
Transparency Switzerland, part of a global network with a presence in more than 100 countries, acknowledged that Swiss authorities were dependent on the cooperation of firms suspected of money-laundering to bring those same firms to justice.
But the judicial transparency and security needed to underpin that cooperation was lacking, it said.
State prosecutors therefore needed to clamp down harder on perpetrators, said Hilti.
"Having a properly functioning penal system is essential to prevent and combat corruption and money-laundering," he said in a statement.
"Leaving foreign authorities obliged to launch prosecutions against Swiss companies paints a poor image of our country."
The cantonal prosecutors office in Zurich did not respond to a Reuters request for comment on the Transparency Switzerland report.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
