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 Transparency International's Corruption Perceptions Index, indicating low corruption levels, with strict laws against bribery and effective enforcement mechanisms. The Swiss government actively combats corruption through various federal and cantonal authorities, and has ratified multiple international anti-corruption conventions. While the country has made significant strides in prosecuting foreign bribery, recommendations from the OECD suggest further improvements, particularly in protecting private sector whistleblowers and enhancing penalties for corruption.

Switzerland boasts a competitive and stable economy, ranked as the fifth most competitive globally by the World Economic Forum in 2019. The country is characterized by a transparent legal system, efficient capital markets, and a highly skilled workforce, attracting significant foreign investment, particularly in sectors like pharmaceuticals and technology. With a favorable tax environment and strong infrastructure, Switzerland serves as a key hub for many U.S. firms looking to establish their European headquarters.

Switzerland offers a favorable investment climate characterized by a transparent legal system, efficient capital markets, and a skilled workforce. The country maintains modest corporate tax rates and provides incentives for foreign investment, while also ensuring national treatment for foreign investors. With a high global ranking in competitiveness and a welcoming approach to foreign direct investment, Switzerland has attracted significant inward direct investment, amounting to USD 1.4 trillion as of 2020.