NCJ Number
177848
Journal
White Paper Volume: 13 Issue: 3 Dated: May-June 1999 Pages: 18-21
Date Published
1999
Length
4 pages
Annotation
This article describes the effects of the new Swiss Money Laundering Act, which went into effect in April 1998.
Abstract
The new Swiss law sets up reporting requirements whereby legal authorities are notified of suspicious transactions or unusual operations. Banks must identify their clients by name and keep accurate records; they are granted exemption from any legal or civil liability for reporting these transactions. The reporting requirements also apply to any persons or entities that: undertake credit transactions; provide electronic transfers for third parties or issue credit cards or travelers checks; trade in bank notes, cash, money market instruments, precious metals or derivatives; offer or distribute shares in funds; undertake asset management; make investments as an adviser; or keep or manage securities. As a result, Russian and Ukrainian criminal groups have begun to move their operations away from Switzerland in favor of the Caribbean. Antigua, Dominica, Belize, and St. Kitts have had the heaviest influx of financial criminal activity as a result of their offerings of “economic citizenship,” which can be obtained in as little as 3 weeks by paying the government from $25,000 to $50,000 dollars. The new citizens can use their passports to travel to America and some 50 other countries without a visa.