Capus, Nadja --- "Country Report: Combating money laundering in Switzerland" [2004] ELECD 133; in Pieth, Mark; Aiolfi, Gemma (eds), "A Comparative Guide to Anti-Money Laundering" (Edward Elgar Publishing, 2004)

Book Title: A Comparative Guide to Anti-Money Laundering

Editor(s): Pieth, Mark; Aiolfi, Gemma

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781843766735

Section: Chapter 4

Section Title: Country Report: Combating money laundering in Switzerland

Author(s): Capus, Nadja

Number of pages: 113

Extract:

4. Country Report: Combating money
laundering in Switzerland
Nadja Capus

I HISTORICAL DEVELOPMENT AND SIGNIFICANCE
OF SWITZERLAND AS A FINANCIAL CENTRE
A The Significance of Swiss Banking Today

Although a relatively small country, Switzerland ranks as one of the major
financial centres in the world. This importance is also reflected domestically
with the banking industry being one of the most important sectors of the econ-
omy, employing around 5.7 per cent of the working population according to
data from 2000.1 Asset management alone accounts for over half of the banks'
output which translates to over SFr. 20 bn, or more than 5 per cent of GDP; of
this an estimated 85 per cent is generated by private clients. The banks also
have extensive experience in cross-border asset management (that is, with
customers domiciled abroad); with an estimated 30 per cent of the interna-
tionally invested private assets world-wide being managed in Switzerland.2
There are some 375 banks in Switzerland (of which 150 are foreign banks),
only 25 per cent of these banks have total assets that exceed SFr. 1 bn,
however they account for 95 per cent of the aggregate total assets of all banks
in Switzerland. In international terms, the status of banks' balance sheets indi-
cate the degree to which Swiss banks are involved in foreign business: By the
end of 2000, the combined foreign assets of all Swiss banks amounted to
SFr. 1175 bn and foreign liabilities amounted to SFr. 1085 bn, ...