Federal Council commences work on implementing FATF recommendations
Bern, 18.04.2012 - At its meeting today, the Federal Council took note of and welcomed the revised international recommendations to combat financial crime. At the same time, the Federal Council appointed an interdepartmental working group under the leadership of the Federal Department of Finance (FDF) to draw up recommendations on implementing the revised recommendations of the Financial Action Task Force (FATF) and a consultation draft by the first quarter of 2013.
On 16 February 2012, the FATF approved a partial revision of the FATF 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 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 current recommendations
- A new standard on implementing targeted financial sanctions within the scope of UN resolutions to prevent the proliferation of weapons of mass destruction
- Establishment of the risk-based approach as the most efficient instrument for combating financial crime
The revised standards require modifications of the existing system in certain areas in Switzerland as well. The Federal Council has therefore appointed an interdepartmental working group under the leadership of the Federal Department of Finance to draw up a consultation draft by the start of 2013.
The Financial Action Task Force (FATF) is the most important international body for cooperation against money laundering, terrorist financing and now the financing of the proliferation of weapons of mass destruction. The task force was founded in 1989 in Paris. Its main task is to identify money laundering methods, terrorist financing and now the financing of weapons of mass destruction, to develop recommendations for effective countermeasures and to harmonise policies on combating money laundering at the international level by means of minimum requirements.
Address for enquiries
Mario Tuor, Communications, State Secretariat for International Financial Matters,
+41 31 322 46 16, email@example.com