The Swiss voice in the world since 1935

Swiss banks urged to step up fight against financial crime

A picture of a Swiss banking vault
The banking industry must send out a clear message that it is committed to consistently prevent and detect financial crimes, wrote the researches. Keystone

Swiss financial institutions and public authorities must do more to prevent organised crime and money laundering within the financial system, a study by the consulting firm KPMG published on Tuesday has found.

The authors of the study called “Clarity on Crime in Financial Services” highlighted several challenges and problems which must be addressed if banks want to successfully prevent and identify criminal financial activities in future. 

New technologies and digital currencies had made it increasingly difficult to track cross-border cashflows, the study found.

But current financial regulations are not keeping up with the speed of recent technological development.

+ OECD says Switzerland needs to step up the fight against ‘foreign bribery’

Some 50 banks surveyed had deficits in their risk approaches and their IT infrastructures, the researchers found.

Action required

The banking industry must send out a clear message that it is committed to consistently prevent and detect financial crimes, wrote the researches.

Banks must also raise awareness of the problem among their employees to help them achieve their compliance goals and reduce costs.

What is needed is a sound internal framework which counters the risk of financial crime. Banks must foster a strong compliance culture. The onus is on management to set “an appropriate tone”, which includes enforcing penalties for employees who violate guidelines, wrote the researchers.

There is also a need for action when it comes to reporting financial crimes, since it was up to the banks to file high-quality reports to the Swiss Money Laundering Reporting Office SwitzerlandExternal link.

Good reporting practice would be beneficial for the entire financial market in Switzerland, the authors concluded.

More

Popular Stories

Most Discussed

News

cern

More

Plans materialise for new particle accelerator in Geneva

This content was published on Preparations for a huge new particle accelerator in Geneva have reached a milestone. After several years of work, a feasibility study for the project has now been finalised.

Read more: Plans materialise for new particle accelerator in Geneva
More Russian assets frozen in Switzerland

More

More Russian assets frozen in Switzerland

This content was published on The value of frozen Russian assets in Switzerland currently stands at CHF 7.4 billion, the Swiss Confederation announced on Tuesday. This represents an increase of CHF 1.6 billion in one year. Additional assets have been identified, according to the State Secretariat for Economic Affairs.

Read more: More Russian assets frozen in Switzerland
Increase in business start-ups in the 1st quarter

More

Increase in Swiss business start-ups in Q1

This content was published on The number of business start-ups in Switzerland accelerated in the first three months of the year, with entrepreneurs being particularly dynamic in Central Switzerland, Basel and Geneva.

Read more: Increase in Swiss business start-ups in Q1
Swiss and French armies train together

More

Swiss and French armies train together

This content was published on French and Swiss armoured and artillery units will train together to strengthen the defence capabilities of the Swiss army.

Read more: Swiss and French armies train together

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR