Switzerland Begins To Implement FATF Revisions
Tuesday, April 24, 2012
Switzerland’s Federal Council has recently commenced work on implementing
the latest Financial Action Task Force (FATF) recommendations, according to
the Swiss Federal Department of Finance (FDF).
The FDF said that the Federal Council has now taken note
of and welcomed the revised international recommendations to combat financial
crime, and has appointed an inter-departmental working group under the leadership
of the finance ministry to draw up recommendations on implementing the FATF
revisions together with a consultation draft by the start of 2013.
On February 16, 2012, the FATF approved a partial revision of its standards
on combating money laundering, terrorist financing and now also the financing
of the proliferation of weapons of mass destruction.
Switzerland, which has been a member of the FATF since it was founded in Paris
in 1989, was actively involved in the revisions.
The main changes are as follows:
Serious tax crimes will qualify as a predicate offence for money laundering;
Clarification of the provisions on determining the beneficial owner of legal
entities (in particular of legal entities with bearer shares) and trusts;
Additional inclusion of domestic politically-exposed persons (PEPs) in the
A new standard on implementing targeted financial sanctions within the scope
of UN resolutions to prevent the proliferation of weapons of mass destruction; and
Establishment of a risk-based approach as the most efficient instrument
for combating financial crime.