Ethics and governance in the European Financial centers

The SFBC (Swiss Federal Banking Commission) published recently the judgement of the Supreme Court of 9 February 2006 which among other deals with the territorial application of the Money Laundering Act, the consolidated supervision of bank groups and the due diligence obligations regarding higher risks relationships. The judgement will also be published in the SFBC Bulletin 49 to be released in autumn 2006.


See judgement

The number of reports on suspicious transactions submitted to the Money Laundering Reporting Office of Switzerland (MROS) decreased for the second consecutive year in 2005. Most financial intermediaries under duty to report seemed to have less reason to suspect shady money transactions. Similarly, the number of reports from banking institutions decreased for the first time since the duty to report was introduced. As in previous years, the money transfer services accounted for almost half of the reports submitted. In its country assessment, the FATF evaluated MROS favorably.
While the number of reports received in 2004 had declined by 4.9 percent to 821 compared to the previous year, the number of reports further decreased by as much 11.2 percent to 729 reports in 2005. In 2005 MROS registered 11 percent, or 43, fewer reports filed by money transfer services―the business sector that accounts for the largest business volume― than in 2004.
In 2004, 75 percent of the sum total of reports was forwarded to the appropriate prosecuting authorities for further investigation. Of a total of 729 reports received by MROS in 2005, 504 reports (69 percent) were forwarded.
In 2005, the Financial Action Task Force (FATF) assessed the Swiss financial center and the measures for combating money laundering and terrorism financing for the third time. Also assessed was the cooperation of MROS with financial intelligence units of other nations. Taking into account the particular circumstances under which MROS operates, the FATF certified MROS as efficient and professional , an assessment that translates into »largely compliant« with FATF standards.

Declarations_of_suspicion_CH.pdf

FATF-GAFI_CH.pdf