In spite of all the attention the nation has received in recent years, SCMP reports [9] that thousands of so-called "politically exposed persons”, or PEPs - a category that includes heads of state and other top officials - hold Swiss bank accounts, a Swiss foreign ministry official said. But, perhaps not for much longer as Bern aims to finalize a law aimed at simplifying the process of freezing and unblocking such funds.
As The South China Morning Post reports, [9]
Swiss authorities estimate that “there are thousands of PEPs [with accounts] in Switzerland, not hundreds,” Valentin Zellweger, who heads the ministry’s Directorate of International Law, told reporters on Monday.
Switzerland has repeatedly been embarrassed by revelations, splashed across front pages worldwide, of global political heavyweights hiding funds - sometimes embezzled from public coffers - in the Alpine nation’s famous banks.
But the country has not taken such scandals sitting down: it has been freezing suspicious assets for a quarter century.
By the end of this year, Bern aims to finalise a law aimed at simplifying the process of freezing and unblocking such funds.
In total, Switzerland has since 2003 returned a total of around US$1.8 billion embezzled by Ferdinand Marcos of the Philippines, the late Nigerian military dictator Sani Abacha, former Peruvian spy chief Vladimir Montesinos, Jean-Claude Duvalier of Haiti and others.
That is more than any other country has returned and represents a quarter of the US$4billion to US$5 billion in assets restituted globally, Swiss authorities said last year.
Swiss authorities are currently co-operating with a number of countries, among them Haiti, Egypt, Tunisia and Ukraine, to return stolen assets that have been frozen following changes in power, said Zellweger.
Specifically, they are working to return US$40 million to Tunisia, a “big slice” of the US$60 million stashed during the era of former leader Zine al-Abidine Ben Ali, he said.
But the killing of Egypt’s general prosecutor has slowed co-operation with Cairo on returning funds linked to former President Hosni Mubarak, he said.
The Swiss Office of the Attorney General has meanwhile opened a criminal proceeding against two executives and unknown persons from Malaysia’s troubled state investment fund for suspected corruption and money laundering.
Switzerland also recently seized around US$400 million in connection with a massive corruption probe targeting Brazil’s state oil company Petrobras.
Zellweger insisted Switzerland is trying to be “transparent” in its handling of the Petrobas scandal, which involves top executives accused of colluding with construction companies to inflate contracts and bribe politicians.
The Swiss opened their own inquiry into Petrobras in April last year, with authorities vowing to crack down on the large number of suspicious transactions believed to be linked to the case that had moved through the country’s banks.
Switzerland’s attorney general has said the suspected corrupt payments had passed through more than 30 Swiss banks.
This marks a hard blow to the Swiss banking sector, which for years has been striving to clean up its image and crack down hard on money laundering.
“We have to do better,” Zellweger acknowledged, stressing though that Switzerland was the only international banking hub that had provided information about Petrobas-linked transactions.
He said banks in other countries had handled much bigger sums linked to the corruption case, but that those countries were keeping mum.
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Are the elite turning on themselves?
