Switzerland Country Summary

FATF Status

Switzerland is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Switzerland was undertaken in 2023. According to that Evaluation, Switzerland was deemed Compliant for 8 and Largely Compliant for 29 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 7 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Switzerland ranks 7th in the 2021 Corruption Perceptions Index, indicating low corruption levels, with strict laws against bribery and effective enforcement mechanisms. The country has made significant strides in combating foreign bribery, with numerous investigations and convictions, although recommendations for stronger penalties and better protection for whistleblowers remain. Despite challenges in areas like human trafficking and financial crimes, Switzerland's stable governance and active civil society contribute to its resilience against organized crime.

Switzerland boasts a competitive economy, ranked fifth globally by the World Economic Forum in 2019, characterized by a strong institutional environment and high levels of technological innovation. The country maintains a welcoming stance towards foreign investment, with a cumulative inward direct investment of USD 1.4 trillion as of 2020, supported by favorable corporate tax rates and a skilled, multilingual workforce. Key sectors attracting investment include information technology, pharmaceuticals, and machine building, while the Swiss government continues to implement reforms to enhance its investment climate.

Switzerland offers a positive investment climate, characterized by a transparent legal system and favorable corporate tax rates, which attract many international investors, particularly U.S. firms. The country maintains a competitive economy with minimal barriers to foreign investment, and its cantonal tax reforms ensure equal treatment for both domestic and foreign companies. Additionally, Switzerland's strong infrastructure, skilled workforce, and commitment to innovation further enhance its appeal as a regional business hub.