May 25, 2016
Switzerland will implement a new law in July to help seize and repatriate illicit wealth parked in its banks by foreign dictators, the government said on Wednesday. The move is aimed at helping Switzerland and its wealth management industry shake off their image as a secretive haven for ill-gotten riches.
This issue was in the news again this week when Singapore shut down Swiss private bank BSI’s operations in the city-state and Swiss prosecutors began criminal proceedings against BSI in the biggest international crackdown on financial entities dealing with a scandal-hit Malaysian government fund. The Swiss cabinet agreed to implement from July 1 a law that lets authorities seize and return funds that foreign leaders looted, even in cases that cannot be resolved through standard international requests for mutual legal assistance. Switzerland has tightened money-laundering laws in recent years and requires financial institutions to enforce “know your customer” rules. These also cover “politically exposed persons” encompassing leaders, ministers and military brass.
Over the past 15 years it has returned nearly 1.8 billion Swiss francs’ worth of assets, more than any other financial centre, it says.