Switzerland asked to tighten law on money laundering
2023.01.13 02:03
Switzerland asked to tighten law on money laundering
By Kristina Sobol
Budrigannews.com – An ethics group said on Friday that Swiss prosecutors should do a better job of enforcing money-laundering laws because the country still tolerates corporate financial corruption.
According to the Swiss branch of Transparency International, there have only been ten documented convictions for money laundering and related corruption in the context of business transactions between companies under 2003 laws.
According to research conducted in 2012, approximately every fifth Swiss exporter had made “informal (corrupt) payments abroad.”
All of the companies that were found guilty and fined had businesses in other countries, but Transparency Switzerland’s head Martin Hilti told Reuters that the group’s criticisms also applied to domestic businesses. There were no banks.
After battling to dispel its previous image as a location where criminals could stash illicit gains, Switzerland now routinely exchanges information about bank accounts with over 100 nations.
However, it has come under international pressure to provide more information about corporate ownerships, and in October, it announced plans to establish a centralized registry of legal entities in order to combat money laundering through the use of shell companies.
As a member of a global network that spans more than 100 nations, Transparency Switzerland acknowledged that Swiss authorities were dependent on the cooperation of businesses that were suspected of money laundering in order to bring those businesses to justice.
However, it claimed that there was a lack of the judicial transparency and safety necessary to support that cooperation.
According to Hilti, as a result, state prosecutors must pursue perpetrators with greater vigor.
He stated in a statement, “To prevent and combat corruption and money-laundering, it is essential to have a properly functioning penal system.”
“Our country’s image suffers when foreign authorities are forced to bring prosecutions against Swiss businesses.”
When Reuters inquired about the Transparency Switzerland report, the Zurich cantonal prosecutors office did not respond.
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