Reported incidents of money laundering have risen by more that 30 per cent from 311 to 417 reports between 2000 and 2001, according to the M...

Reported incidents of money laundering have risen by more that 30 per cent from 311 to 417 reports between 2000 and 2001, according to the Meldestelle für Geldwäscherei, the Swiss Federal Money Laundering Office (MROS) in its annual report. Ninety-five of the reports were directly related to the search for terrorist funds and all of these were made between 11 September and the very end of 2001.

Eighty-one cases were reported in October 2001, compared with 29 in October 2000. A record total of funds, SFr2.728bn, were also frozen as a result of the reports made in 2001; up from SFr1.374bn the previous year. The MROS said the amount was linked to five separate cases that accounted for a total of SFr2bn but declined to mention which.

The largest proportion of reports in 2001 came from the banking sector, which accounted for around two thirds, compared with three quarters in 2000. A substantial increase of reports came from the non-banking sector, which the MROS welcomed because it demonstrated that those industries were more aware of money laundering than previously. Swisspost, which has payment accounts, trustees, fiduciaries and independent wealth managers all increased the number of suspicious transaction reports to the MROS. Even lawyers and insurance companies filed reports, albeit roughly three per cent of the total.

The greatest number of reports came from the Cantons Zurich and Geneva; each reported 133 cases of suspected money laundering. Bern reported 64 and Tessin reported 39. The MROS, which is a department of the Federal Office of the Police, often acts a pivotal point of contact between financial firms and prosecuting officials. It is a different office from the Kontrollstelle für die Bekämpfung der Geldwäscherei, which is the regulatory body for the banking sector.

The MROS took all STRs and broke them down by sector. In 2000 there were 311 STRs in toto; in 2001 there were 417. The histogram below shows the changing percentages and illustrates the extent to which banking STRs have declined as a part of the whole.

Terrorist financing

There were 95 STRs to do with suspected terrorist financing. One part of the report delineated the number of STRs according to their five reporting cantons. It also looked at the types of firm that surrendered reports. It then concentrated solely on the reporting banks to the exclusion of other kinds of institution. The categories of bank do not fit into the usual English system of classification but are expressed instead in the MROS's own words.

Geographical origin of reporting financial firms

Canton Number of reports Percentage of reports
Zurich 13 14
Bern 33 35
Geneva 43 45
Ticino Two Two
Sankt Gallen Four Four
Total 95 100

Type of financial firm that reported suspicions of terrorism

Type of institution Number of Reports Percentage of reports
Banks 32 34
Post office 33 35
Tied agents 24 25
Insurers One One
Bureaux de change One One
Credit card companies Four Four
Total 95 100

Categories of reporting institution - banks only

Type of bank Number of reports Percentage of reports
Foreign banks 18 57
Big banks Six 19
Regional banks Three Nine
Cantonal banks Two Six
Private banks Three Nine
Total 32 100

The report also inquired into the nationality and place of domicile that pertained to every person who was the subject of a suspicious transaction report to do with terrorism. There were few surprises here; Out of a total of 95, 35 were Saudi citizens; 33 were Swiss; five were Italian; three were from Liechtenstein; three were Afghan; two were French; two were Egyptian; and there was one each from the US, the UK, Pakistan and a welter of other countries. The domiciliary figures were similar. Out of the 95, 34 were living in Saudi Arabia; 41 in Switzerland; three in Italy; three in Liechtenstein; two in Egypt; two in Germany; and one each in the US, the UK and the rest. The report did not match up citizenship with domicile.