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Switzerland: money laundering risks reported by banks increased with financial scandals

2021-10-29T20:44:26.777Z


The risks of money laundering reported to the authorities by Swiss banks increased significantly between 2015 and 2019 following the financial scandals ...


The risks of money laundering reported to the authorities by Swiss banks increased significantly between 2015 and 2019 following financial scandals such as the Panama Papers or the 1MDB scandal, according to a report by the Swiss Ministry of Finance published on Friday.

Read alsoBrussels strengthens its anti-money laundering system

Between 2015 and 2019, the number of reports sent to the Money Laundering Communication Office (MROS) was four times more numerous on an annual average than over the previous ten years, according to a report which takes stock of the situation. risks of money laundering in Switzerland. On average, 4,758 cases were reported to this authority responsible for analyzing the risks and if necessary transmitting them to the criminal prosecution authorities each year over the period, against an average of 1,113 between 2004 and 2014, the banks being at the origin of the greatest number of alerts.

This

“rain of reports” is

explained by the fact that banks, more exposed to the risk of money laundering, and therefore more sensitive to the risks that can splash them, have been monitoring their customers more since 2015, according to the authors of this report.

“The years 2015-2019 were marked by the outbreak of major foreign corruption cases”

, they recalled, citing the example of the “Lava Jato” operation in Brazil, the “1MDB in Malaysia” scandal but also the revelations of the international consortium of investigative journalists such as the "Panama Papers" or "Paradise Papers". There were also the so-called Laundromat cases, involving

“massive flows”

of funds from countries of the former USSR,

“Often through Baltic banks

,

they added.

Increased demands

"Informed by the examples of these major international money laundering cases which have brought out important ramifications in Switzerland, the banks are monitoring their customers better and are stepping up the checks"

, noted the authors of this report.

But they also highlight the increased requirements in terms of control, which have been reinforced since a previous report produced in 2015, pushing banks to

"increase internal audits"

.

Produced by the interdepartmental coordination group on the fight against money laundering and the financing of terrorism, this report reviews the major risks to which Switzerland is exposed in order to be able to “fight effectively”.

His analysis focuses on banks and asset managers but also on non-financial intermediaries, including commodity trading, which continues to present

"a significant risk"

.

Source: lefigaro

All business articles on 2021-10-29

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