Switzerland, CMS von Erlach Poncet Ltd updates

White Collar Crime

Contributed by CMS von Erlach Poncet Ltd
Cooperation with foreign judicial authorities – Article 271 of Criminal Code remains serious obstacle
  • Switzerland
  • 29 April 2019

The Federal Supreme Court recently ruled that a Swiss-based asset management company's disclosure of client information to US authorities with a view to facilitating the conclusion of a non-prosecution agreement violated Article 271 of the Criminal Code. The decision reiterates that the court does not look favourably on persons who take matters into their own hands and bypass the competent Swiss authorities in furtherance of foreign state interests.

New draft bill on private sector whistleblowing
  • Switzerland
  • 17 December 2018

The inadequacy of whistleblower protection in Switzerland has been widely criticised for years. Despite the legislation on public sector whistleblowing which was introduced in 2011, there is no concise legal framework specifically addressing respective issues in the private sector. To fill the gap, the Federal Counsel recently proposed a leaner and more understandable piece of legislation, which will be introduced into the section governing employment contracts in the Code of Obligations.

Federal Tribunal upholds conviction of asset manager for not disclosing retrocessions
  • Switzerland
  • 08 October 2018

The Federal Tribunal recently confirmed an asset manager's conviction of criminal mismanagement under Article 158 of the Swiss Criminal Code for failing to disclose retrocessions received from a custodian bank. This is the first time that the tribunal has ruled on the controversial issue of whether the failure of an asset manager to render accounts on retrocessions and similar rewards paid by third parties in connection with the asset manager's performance of their mandate would qualify as criminal mismanagement.

Amendments to Anti-money Laundering Act – consultation process initiated
  • Switzerland
  • 27 August 2018

The Federal Council recently initiated the consultation on a number of amendments to the Anti-money Laundering Act. The consultation draft marks the third bundle of legislative measures to comprehensively implement the recommendations of the Financial Action Task Force in its latest mutual evaluation report on Switzerland. However, the proposed extension of the act's scope to include advisers marks a significant and highly problematic step.

Proposed implementation of FATF and Global Forum transparency recommendations meets stiff opposition
  • Switzerland
  • 11 June 2018

In one comprehensive bill, the Federal Council addressed the concerns of the Financial Action Task Force and the Global Forum on Transparency and Exchange of Information for Tax Purposes with regard to the transparency of legal entities. The proposed measures would not only replace a system that was introduced merely three years ago and has proven to be effective, but would also entail severe consequences for approximately 60,000 companies in Switzerland.


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