Asset Recovery in cases of foreign politically exposed persons (PEPs)
As a major international financial centre, Switzerland is committed to the fight against global corruption. Asset recovery allows, under certain conditions, for illicitly acquired PEP assets to be frozen, confiscated and returned to the legal economic cycle. Switzerland has developed a diverse set of legal instruments to implement this process effectively.
Switzerland's foreign policy engagement is based on a value system that aims to promote the rule of law, justice, transparency, and social and economic welfare. The global problem of corruption is a hurdle to achieving these goals. Switzerland is taking measures to combat corruption at both domestic and international level in order to encounter this hurdle.
Illicit assets of foreign politically exposed persons (PEPs) constitute a particular challenge, to which Switzerland has devoted increased attention over recent decades. These involve cases in which PEPs or their close associates illicitly enrich themselves and deposit their illegally acquired assets in various financial centres, including Switzerland.
Asset recovery is an instrument to address this phenomenon. Through asset recovery, illicit assets of foreign politically exposed persons (PEPs) that reach the Swiss financial centre despite preventive mechanisms can be identified, frozen, confiscated and returned to the legitimate economic cycle.
Foreign politically exposed persons (PEPs)
PEPs are persons who have been entrusted with prominent public functions by a foreign country, for example heads of State or government, senior politicians at national level, senior government, judicial or military officials at the national level, important political party officials at national level and senior executives of State-owned corporations of national importance.
Documents
The key elements of Switzerland’s policy for dealing with illicit assets of foreign politically exposed persons (PEPs) are set out in the strategy adopted in 2014.
Legal framework
Switzerland has a comprehensive and versatile legal framework to address illicitly acquired assets of foreign politically exposed persons (PEPs) deposited in the Swiss financial centre.
Freezing of assets
In special situations, e.g. following a political upheaval, the Federal Council can take measures to prevent the removal of illicit assets.
Return of illicit assets of foreign politically exposed persons (PEPs)
If illicitly acquired assets enter Switzerland despite the comprehensive precautionary measures in place, the funds in question must be identified and returned to the country of origin.
Switzerland’s commitment at the international level
Switzerland is committed internationally to effective measures against corruption and has launched several initiatives for better coordination in the fight against illicit assets.
Contact
FDFA, Directorate of International Law DIL
Kochergasse 10
3003 Bern