This document discusses international cooperation between Switzerland and other countries on legal matters related to fraud investigation. It covers several topics: 1. Switzerland's system for cross-border criminal cooperation, which centralizes extradition proceedings and some mutual legal assistance proceedings. Assistance is based on trust and low thresholds for assistance requests. 2. The role of Switzerland's Federal Office of Justice in processing mutual legal assistance requests and negotiating treaties. It also executes some requests and negotiates asset sharing agreements. 3. The effectiveness of Switzerland's practice of spontaneously transmitting information to other countries to facilitate criminal investigations, even when banking secrecy would normally prevent evidence sharing. 4. Recent laws and proposals regarding politically exposed persons, to prevent ill

1. Federal Department of Justice and Police FDJP
Federal Office of Justice FOJ
Division for International Legal Assistance
Pascal Gossin
Swiss Federal Office of Justice
London: Carmelite Chambers: International fraud and asset recovery
Conference
INTERNATIONAL CO OPERATION IN FRAUD INVESTIGATION:
MUTUAL ASSISTANCE AND EXTRADITION
SWITZERLAND: the answer of a financial center

2. SWITZERLAND: the answer of a financial center
Presentation outline
• Cross border cooperation in criminal matters: the
Swiss system
• Mutual Legal Assistance : FOJ as turntable of
domestic and foreign requests
• The spontaneous transmission of information:
an effective tool in the fight against international
crime
• PEP (politically exposed persons) corner:
something new ?

4. MARKET SHARES OF CROSS-BORDER PRIVATE
BANKING IN 2012
.
Source: Boston Consulting Group

5. SECURITY HOLDING IN CLIENT CUSTODY ACCOUNTS
Source: Swiss National Bank

6. Securities holdings in client bank accounts
(domestic and foreign account holders), in CHF bn
Source: Swiss National Bank. Monthly Statistical Bulletin August 2013
Total amount (End June 2013) 4672
CHF Bn
RISK

7. Cross border cooperation in criminal matters: the
Swiss system (main features)
• Centralisation of the extradition
proceeding
• Partial centralisation of the mutual legal
assistance proceeding
• Assistance based on trust: low theeshold
of admissibility for MLA requests ( for
restrain, evidence)
• Leader position in asset recovery

8. 8
1. OVERALL COMPETENCE IN MUTUAL LEGAL ASSISTANCE
TRANSMISSION OF MLA REQUESTS (CENTRAL AUTHORITY/MINISTRY OF
JUSTICE)
NEGOCIATION OF MUTUAL LEGAL ASSISTANCE TREATIES
2. SURVEY OF SWISS MLA PROCEEDINGS
APPEAL STANDING AGAINST SWISS DECISIONS ON MLAT REQUESTS
CONSULTATION IN EACH APPEAL PROCEEDING
GUIDELINES
Mutual Legal Assistance : FOJ as turntable of
domestic and foreign requests

9. 9
3. OPERATIONAL FUNCTIONS
• EXECUTION OF EXTRADITION REQUESTS (from arrest to
surrending)
• EXECUTION OF SOME IMPORTANT MLA REQUESTS
(enforcement powers such as providing of banking
documentation, freeze and return of assets, telephone control…)
• SHARING OF ASSETS (negociation and conclusion of sharing
agreements with foreign countries)
• NATIONAL CONTACT POINT TO EJN and EUROJUST

10. Return of assets in Switzerland
Main players (% total amount returned of CHF 1,7 bn )
And cases up to end 2010

11. The spontaneous transmission of information: an
effective tool in the fight against international crime
• Goal: improvement of the inter-State cooperation
• Mean: providing of information or evidence to a foreign
State in order to permit the opening of a criminal
proceeding or facilitate an ongoing criminal investigation.
• Restriction 1: no evidence but only information can be
transmitted if rules of secrecy apply (ex banking secrecy)
• Restriction 2: if no international agreement exists with
the foreign State, FOP decides on the transmission
• Swiss experiences: very effectives (ex Montesinos) /
Brasil. Useful in PEP cases

12. Spontaneous transmissions of information
Statistics 2004-2013

13. PEP (politically exposed persons) corner:
something new ?
• The international financial centres must form a common front to prevent the
inflow of such funds, to quickly freeze assets of criminal origin and return them
to the rightful owners. In some circumstances, mutual legal assistances is not
(no more) the solution.
• Act on the Restitution of Illicit Asset (LRAI) of 1.10.2010
The law comes into existence as a result of difficulties encountered by the
Swiss authorities in returning assets frozen in Switzerland to so-called “failing
State”. The law comprises the three instruments of freezing, forfeiture and
restitution in situations of “failure”.
• New draft Federal Act on the Freezing and Restitution of Assets of
Politically Exposed Persons obtained by Unlawful Means The preliminary
draft proposes a single act providing for the freezing, confiscation and
restitution of potentates' assets The preliminary draft provides for the
preventive freezing, as a precautionary measure, of assets of politically
exposed persons. In addition, it establishes procedures for the administrative
confiscation and restitution of potentates' assets. Possibility of advanced
transmission of information.