MANAGING EVOLVING MONEY LAUNDERING RISK IN SWITZERLAND
R&C: To what extent is financial crime growing in frequency and complexity? How would you summarise recent trends in Switzerland?
Huber: Financial crime, also known as economic crime, refers to illegal acts committed by an individual or a group of individuals to obtain a financial or professional advantage. The principal motive in such crimes is pure economic gain. Compared to 2018, the damage caused by such financial crime in Switzerland doubled in 2019. Although there were fewer documented court cases, the average amount involved per case was significantly higher than in the year before. In 2019, the number of cases involving fraud in excess of CHF 10m rose from four cases in 2018 to nine cases. With respect to recent trends in Switzerland, the Federal Council suggested an amendment to the Swiss Code of Obligations to give whistleblowers legal protection from a civil law perspective. Specifically, pursuant to the proposed legislation, whistleblowers reporting misconduct at their workplace to the authorities would get legal protection if there is reasonable grounds for suspicion. Dismissal by the employer in response to lawful reporting under the new whistleblower clause will explicitly be unlawful. It should be noted, however, that the legislative process is still ongoing.
Jan-Mar 2021 Issue
Pestalozzi Attorneys at Law