Swiss priorities in the fight against corruption: Key elements of the remarks of Federal Councillor Didier Burkhalter, during the Anti-Corruption Summit

12.05.2016

London, 12.05.2016 - Check against delivery

Speaker: Didier Burkhalter; Burkhalter Didier

Federal Councillor Didier Burkhalter calls for preventative measures to reduce the risk of corruption at the Anti-Corruption Summit.
Federal Councillor Didier Burkhalter calls for preventative measures to reduce the risk of corruption at the Anti-Corruption Summit. © Keystone

Corruption is a corrosive and destructive force. It undermines the best of our human achievements. It is an obstacle to human equity and a tax on economic development. I therefore congratulate Prime Minister Cameron on this unique and very timely initiative.

For Switzerland, fighting corruption has been a high priority, as a champion of human rights, a modern global financial centre, and a global commodity hub.

But before we fight corruption, all our efforts should go into preventing it from happen; through good governance, the rule of law, human rights, and an appropriate distribution of power.

In the fight against corruption, three topics are particularly important to us in this complex discussion: Asset Recovery, Beneficial Ownership, and International Sports Associations.


ASSET RECOVERY

Despite all efforts, some 20-40 billion US-Dollars leave developing countries every year. Over the past decades, only 5 billion US-Dollars have been restituted to the original countries. Of these 5 billion, almost 2 billion US-Dollars were returned by Switzerland alone.

What are the most pressing challenges we face today in the field of asset recovery? Procedures are lasting too long, often many years, and produce too little results.

What can we do to achieve better results? Two elements are indispensable: We have to show, first of all, strong political will and build partnerships and, secondly, establish solid legal frameworks.

On Partnership and political will. Switzerland has decided to act a long time ago. A recent example is Nigeria: I signed a Letter of Intent with the Minister of Justice, M. Abubakar Malami, in Abuja just recently. This will lead to the restitution of 321 million USD in a transparent and accountable way for the benefit of the Nigerian people. In parallel, we plan to return almost 200 Million USD to Brazil in the Petrobras case.

On legal structures:  We need them both at the national and international levels, to act swiftly. Switzerland adopted last December a new legislation which regulates, complementary to mutual legal assistance, the freezing, the confiscation and the restitution of illegally obtained assets, in one single act. It will enter into force on the 1st of July of this year.

We have to increase the use of these legal tools. The Swiss Government ordered numerous administrative freezes to prevent the immediate withdrawal of stolen assets in good cooperation with our financial institutions.

We have helped establish the Lausanne Guidelines, a practical “instruction booklet” for the Efficient Recovery of Stolen Assets that is supported by a wide range of countries.

Switzerland therefore also actively supports the UK initiative to set up an International Anti-Corruption Coordination Centre (IACCC). It could be instrumental to improve the coordination among different institutions in grand corruption cases.

However, blocking and returning assets is an extremely complex and time-consuming task. It is only a means of last resort. Preventing corruption should have the absolute priority.


BENEFICIAL OWNERSHIP

If we are serious about preventing corruption, we also need to be serious about transparency on the ownership of assets. Beneficial ownership is here an important topic, very dear to our hosts.

As a matter of fact, the Financial Action Task Force (FATF) and the Global Forum on Transparency and Exchange of Information for Tax Purposes already provide powerful instruments. But we have not yet come very far in their implementation, unfortunately.

Yes, exchanging information across borders is important. But more important is that in each of our jurisdictions we have the necessary laws in place that request to domestically collect and hold accurate and updated legal and basic and beneficial ownership information.

Our law enforcement and compliance units must have timely access to up-to date company, shareholder and beneficial ownership registries in the country, and if necessary through international cooperation, that allow to identify the ultimate physical owners.

Despite all of our calls, it is still possible today in some of our countries to establish companies or other legal persons or arrangements, without providing information on the ultimate beneficial owner.

Our efforts will not be taken seriously by our people if we leave such loopholes open.


SPORTS ASSOCIATIONS

Switzerland also sees an important action field in sports:

I find it highly ironic and sad that the area of sports – which is based on the principle of fairness and should provide role models for our young – has seen a series of corruption cases in recent years on the highest levels.

Switzerland has been the home for some of the most important international sports associations for many years. We owe it to our reputation as a host country and our own values that they live up to the highest standards.

That is why last year (2015) Switzerland decided to tighten its corruption law in the field of private-sector bribery - it now applies to all forms of bribes in sports associations.

A recent change of law now also requires that all persons who hold or held a senior role in international sports associations are declared politically exposed persons (PEPs). Our banks must therefore require increased transparency when they enter into business with them. We urge other countries to join Switzerland in doing so.

Finally, I am happy to announce that we would be delighted to cooperate in the International Sport Integrity Partnership that our host proposes.

Sports must regain its Olympic values of “Excellence, Friendship and Respect”, and become again a model of integrity and fair play among our countries.


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