In response to the Deputy’s question about an EU level investigation into Switzerland, it should be noted that the EU’s methodology for classifying third countries as holding a high risk in regard to money laundering or terrorist financing was revised in 2020. This process takes the equivalent Financial Action Task Force (FATF) lists as a starting point. Other countries to be assessed and the order of priority for this assessment, are determined based on detailed criteria, including the status of the country’s AML/CFT framework and its ties to the EU financial system. A key feature of this methodology is the engagement with a country prior to a decision on its listing, to allow it to remedy identified deficiencies. The Member States are consulted by the Commission during this process. I trust the Commission services to continue work according to this methodology and I do not wish to prejudge any process or decision which may be made in regard to any country.
Switzerland is a fellow member of the FATF and is committed to upholding its Standards for AML/CFT policy. Switzerland performed well in its 2016 assessment by FATF, in which the country’s framework was found to ‘reflect the high risk level associated with the banking sector.’ Reviews by FATF are conducted by teams of unbiased AML/CFT experts from all over the world. I have full confidence in the impartiality and thoroughness of this process and the resulting assessment of banking regulators, or indeed any other AML/CFT authority.
In terms of customer due diligence, I am informed by the Department of Justice that obligations in Ireland on all designated persons in the financial and non-financial sectors, in relation to customer due diligence to prevent money laundering and terrorist financing, are set out in the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 as amended. These best practice obligations in relation to customer due diligence derive from the FATF Standards and EU obligations under the fourth and fifth anti money laundering Directives. The Central Bank supervises designated financial institutions in the regulated financial sector to ensure compliance with the law.
