Swiss Anti-Money Laundering Chief Slams Regulatory Standards In UK

by Ulrika Lomas, Tax-News.com, Brussels

11 February 2002

Swiss Anti-Money Laundering Control Authority head, Dina Balleyguier, claimed last week that new controls and safeguards to halt money laundering and terrorist financing in Switzerland are more effective than those in place in other countries, most notably the United Kingdom.

She told journalists that the Authority, of which she took control in October 2001, has increased the number and pace of mandatory checks on financial intermediaries such as accountants, financial advisers, and lawyers.

Ms Balleyguier admitted that the Anti-Money Laundering Control had tended in the past to focus solely on banks, but argued that in other countries, regulatory focus is still centred on the banking sector, rather than on all financial service providers.

'As proof, let me point out that several intermediaries - bankers as well as asset managers - tell me that with all the duties that Switzerland imposes on them, all the questions that they are obliged to ask their clients, many customers have decided to go elsewhere - London, not to mention the name.'

When pressed, the anti-money laundering chief said that London was 'often cited' as an alternative destination, but admitted that she had no concrete figures to substantiate the claim.

She also revealed that the Authority's power to conduct spot checks on the accounts of financial intermediaries and to withdraw their operating licences if they are found to be in breach of reporting requirements has meant that far fewer finance professionals are turning a blind eye to suspicious transactions.

'A SFr 200,000 (135,900 euros) fine has never hurt a financial intermediary who earns good money,' she observed, 'but a withdrawal of his operating licence, which stops him earning a living, does encourage him to check on his customers and their money.'

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