Switzerland pilloried in the USA as a hoard of Russian wealth

At the hearing of a commission of the US government and the US Congress on Switzerland’s role as a helper of Russian “oligarchs”, Switzerland critics came up with sharp words on Thursday. The Federal Council speaks of “politically unacceptable allegations” by the American Commission.

Switzerland is in focus as a haven for large Russian fortunes.

Christoph Ruckstuhl / NZZ

Even the invitation was devastating. “Switzerland, long known as a destination for war criminals and kleptocrats to stash their loot, is a leading ally of Russia’s dictator Vladimir Putin and his cronies.” This is how the end of April began announcement an “independent” commission of the US government and the US Congress for a briefing on Switzerland’s role as an accomplice to Russian oligarchs. The organizer was the Commission for Security and Cooperation in Europe, in short «Helsinki Commission». The commission consists of 18 US parliamentarians; In addition, three seats are planned for representatives of US ministries, but these seats are currently vacant, according to Swiss information.

The text on the invitation and the list of speakers with three Switzerland critics and zero Switzerland defenders suggested that the aim was not to present a picture that was as balanced as possible, but rather to smear Switzerland. Among others, the American investor and Kremlin critic Bill Browder, who had had bad experiences with the Swiss federal prosecutor’s office and whose lawyer died in a Russian prison, was invited to provide information. In 2011, Browder’s London-based company filed criminal charges against unknown persons in Switzerland for alleged money laundering in connection with a fraud in the Moscow tax administration. Some of the money is said to have been laundered in Switzerland. The federal prosecutor confiscated 18 million Swiss francs from suspects. In July 2021, however, she discontinued the criminal proceedings due to a lack of substantiated suspicion and also denied Browder’s company its position as a private plaintiff – since there was no evidence of damage to the company.

The journalist Miranda Patrucic, who is stationed in Sarajevo, was also invited. She is part of the international network that evaluated data sent to over 18,000 previous or current customer accounts at Credit Suisse and accused the bank of serious misconduct in checking customers. The third person to provide information was the Basel criminal law professor emeritus Mark Pieth, who has long accused Switzerland of being too lax in the fight against money laundering.

“Unacceptable allegations”

The event had already caused irritation in federal Berne in advance. Federal President Ignazio Cassis used a telephone conversation with his US Secretary of State Antony Blinken this Tuesday to deposit these irritations: “We reject the politically unacceptable allegations and expect the US authorities to correct them immediately.” According to government spokesman André Simonazzi, Switzerland implements the international standards against money laundering and tax evasion, which is also recognized by the relevant international bodies.

The “Helsinki Commission” does not represent the position of the US government. Public hearings of relevant stakeholders can be useful for commissioners to exert political pressure. In the invitation, the commission asked whether the USA should reconsider its strategic bilateral relationship with Switzerland.

«Something is rotten in Switzerland»

The speakers did not disappoint the organizers on Thursday. Bill Browder recalled his experiences with the federal prosecutor’s office, described the behavior of their exponents as incompetent or criminal, painted the former federal prosecutor Beat Lauber in the darkest colors and seems to have little hope of his successor Stefan Blättler. “There is something seriously rotten in Switzerland,” Browder summed up. His recommendation: the US should reconsider its mutual legal assistance agreement with Switzerland.

Meanwhile, Miranda Patrucic recalled the analysis of Credit Suisse customer data, generally criticized Swiss banking secrecy and explained that banks often do not take the duty of care in the fight against money laundering seriously with the richest customers.

Among other things, Mark Pieth criticized the fact that lawyers and consultants are not subject to the Swiss Money Laundering Act, although they often played an important role in concealing the true owners of bank customer funds or real estate through the intermediary of company structures. Pieth recommended that the United States include those lawyers and consultants on the sanctions list who help circumvent existing sanctions. One of the comments from the audience came from the Geneva SP Councilor of States Carlo Sommaruga: He recommended that the EU and the USA put Switzerland under pressure – they only felt pressure.

The message of the event was clear, at least between the lines: Switzerland is also not seriously implementing the current sanctions against Russia. According to Pieth, the responsible State Secretariat for Economic Affairs (Seco) is overwhelmed. A main problem: The Seco often does not know the real owners of companies, real estate and even bank accounts.

Some speakers repeatedly recalled the Bankers Association’s rough estimate that Russian customer assets of around 150 to 200 billion Swiss francs could be held in local banks. Only the upper end of the range was mentioned; and the effective sum is probably much higher. In comparison, the frozen sum of less than 10 billion is an “insult,” said Bill Browder. The reference that by no means all Russian bank customers are on the sanctions list went unnoticed. The subtext was clear: all Russian clients of Swiss banks are crooks.

“When it comes to implementing the sanctions, Switzerland is doing well in international comparison,” says the Swiss statement. One is in constant exchange with all relevant actors at home and abroad, also with the USA. In Europe, Switzerland regularly takes part in meetings of the “Freeze and Seize” working group; the EU Commission very much welcomed Switzerland’s contribution.

If in March by the US, seven other countries and the EU Commission announced joint working group Repo for the hunt for dubious Russian assets comes to fruition, according to reports Switzerland should also want to take part. But the matter does not seem to be ready for a decision yet.

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