Switzerland must make it much harder for the corrupt to hide behind secret companies if the country wants to keep criminal activity out of its financial system, Transparency International Switzerland said as it launched the "Unmask the Corrupt" campaign in Switzerland.
Currently, Switzerland does not require the identity of the real, living people who ultimately own, control or benefit from a company. This secrecy makes it easier for corrupt foreign public officials and businesspeople to hide the origin of their stolen money from law enforcement, the public and governments who may seek its return. Transparency International believes that Switzerland must collect this information, and make it accessible to law enforcement. Public registers are the best way to do this not least since banks would be required to consult this register when undertaking due diligence on their clients.
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"Switzerland needs to extend the scope of its anti-money laundering legislation in order to prevent the corrupt from hiding the proceeds of crime and corruption on its soil. No longer should the corrupt be able to get away with illicit activities, often linked to international organised crime, with the help of Switzerland," said Eric Martin, Chair of Transparency International Switzerland.
Transparency International Switzerland’s efforts to unmask the corrupt and throw light on company ownership is part of a broader Transparency International campaign that calls on governments worldwide to halt illicit financial flows stolen through the abuse of power, bribery and secret deals.
"For too long, the corrupt have been allowed to hide their ill-gotten gains in foreign countries. This has to stop now in the interest of all countries and their citizens," warned Cobus de Swardt, Transparency International’s Managing Director.
In Switzerland, the campaign coincides with the parliamentary debate over a bill regarding the implementation of recommendations made by the Financial Action Task Force (FATF).
The recommendations are currently recognised as the international standard for combating money laundering. The Swiss Parliament should not attempt to dilute the current Federal Bill and should also work towards measures to ensure the effectiveness of essential legislation such as a better protection for whistleblowers and a reinforcement of the Swiss penal code for cases of private corruption.
To stop the corrupt from enjoying their ill-gotten gains, Switzerland must also restrict the size of cash payments when buying luxury goods. The ability to spend large amounts of cash without a regulated financial intermediary greatly increases the risk of money laundering.
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