Disputing the suggestion that the banning of seven financial intermediaries in 2003 represented a low number, Ms Balleyguier explained that:

"If you consider that we conduct hundreds of investigations to find out if an individual or a company has broken the law, I would say the fact that we have to sanction so few of them means we have already weeded out the lawbreakers."

She went on to add that despite the fact that the number of financial institutions investigated by the MLCA last year increased 57% on 2002 figures to 245:

"I don’t think you should use the number of official sanctions as an indicator of how much money laundering is going on Switzerland. When we ban an intermediary, in many cases it is because they are operating without the right authorisation. This doesn’t mean somebody is indulging in money laundering."

"We have discovered few cases of money laundering, and I am convinced this is because due diligence rules are being applied. Financial intermediaries are doing their homework and not accepting business from money launderers."

The MLCA chief also revealed that the body is seeking to address concerns expressed by the Financial Action Task Force last year regarding loopholes in Swiss anti-money laundering legislation which could allow gem and precious metal traders and art dealers to launder money.