http://www.tacyltd.com/Research_Materials_Full.asp?id=54734

SWITZERLAND TO STRENGTHEN MONEY LAUNDERING AND TERRORISM FINANCING
LEGISLATION

Switzerland is in the process of strengthening the legal instruments it
uses to combat international money laundering and the financing of
terrorism. The Federal Council executive branch has opened consultation
procedures on a number of legal amendments which would allow the revised
recommendations of the Financial Action Task Force on Money Laundering
(FATF) to be implemented. The FATF recommendations are regarded as the
international standard in efforts toward combating money laundering and
terrorism financing. In addition, the Swiss Money Laundering Act will be
amended based on experience gathered to date. The consultation procedure
will continue up to mid-April. 

In June 2003, the FATF completely revised and updated its forty
recommendations covering new categories of criminal offenses in the
money laundering and terrorism financing sectors. Swiss legislation
already broadly conforms to the new FATF standards. However, the
recommendations diverge from current Swiss legislation and policy on
combating money laundering in a few points. The list of crimes which can
be considered ‘predicate offenses’ for money laundering has been
extended in the new recommendations. New on the list are counterfeiting
of products, piracy of products, trafficking in human beings and serious
smuggling offenses, together with insider trading and market
manipulation. This requires amendments to the Swiss Criminal Code, the
Copyright Act, the Foreign Nationals Act, the Act on Administrative
Criminal Law and the Act on Mutual Assistance in Criminal Matters. In
addition, corporate transparency should be increased. A change to the
Money Laundering Act in the financial sector is planned by extending the
scope of application of the Act to several professions and activities
outside of the financial sector. The obligation to report suspicious
activity will be extended to include specific situations in which
negotiations are discontinued before a potential business relationship
is established.

Switzerland attaches great importance to having a sound financial
center. It is particularly committed to ensuring that the Swiss
financial center is not abused for criminal purposes, in particular for
money laundering or terrorism financing. In an international comparison,
Switzerland has a solid and extensive set of measures in place to combat
money laundering. Switzerland therefore actively supports the revised
FATF recommendations and their implementation in the domestic
legislation of the FATF member states and other states.

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