Micheline Calmy-Rey, 13:15, Tuesday 15 March 2011
Switzerland was the first country to freeze the assets of Ben Ali, Mubarak and Gaddafi, writes Micheline Calmy-Rey.
Few people could have imagined that the people's uprising in Tunisia would have such far-reaching consequences. On January 14, the former President was forced to flee the country. Five days later, on the 19th, the Swiss government froze any assets of the former President, his family and entourage that might be located in Switzerland.
The Swiss government made a similar decision on the evening of February 11, a mere 30 minutes after the resignation of President Mubarak in Egypt. And when the Libyan rulers used force against their own population, the Swiss Government decided on the 24th to freeze any assets of Muammar Gaddafi and his entourage that might be held in Switzerland with immediate effect. Why did Switzerland take these measures and block the assets of former dictators? Why has Switzerland been the first country in all three cases to take this action, moves that have subsequently been emulated by many other countries?
The answer is very simple: because our policy on this matter is absolutely clear. For almost twenty years the Swiss government has been consistently working to ensure that illicitly acquired assets are not invested in the Swiss financial centre. These efforts have long been recognised in specialist circles, and international experts regularly acknowledge that few countries have been as proactive in this area as Switzerland. A specialist of the World Bank recently remarked: “The idea of Switzerland as a safe haven for stolen funds belongs to the past, and, if at all, is best left to crime thrillers.” Although Switzerland is only ranked seventh amongst the world's financial centres, it occupies first place when it comes to the issue of returning stolen funds: in recent years no other country has even come close to repaying as much money derived from illegal activities to the countries of origin as Switzerland. In total 1.7 billion US dollars has been returned.
Is the reason Switzerland has returned more money simply that it accepted more dirty money than other financial centres? Today competition amongst financial centers’ is global. The reputation and credibility of a financial centre play an increasing part in this competition.
It would therefore be naive to believe that Swiss banks can allow themselves the luxury of standards that are less stringent than those of its immediate competitors. Rather, the reasons for our success can be found in the change of attitude that has taken place in Swiss politics. In recent years, the Government and Parliament have tightened existing laws and created new ones: loopholes have been identified and where necessary legislation improved. In many areas Swiss legislation today goes beyond that of many other countries and serves as a model. The latest example is the Act (Taiwan OTC: 3492.TWO - news) on the restitution of illicit assets of politically exposed persons, commonly referred to as the Lex Duvalier. Although it is often in fragile countries that corruption is rampant, these are precisely the ones that are powerless to protect themselves against the intrigues of their rulers. The Swiss law on restitution is the first of its kind in the world: it enables assets that have been illicitly appropriated or embezzled by dictators to be returned to countries that are no longer in a position to use judicial processes to request its return from abroad.
Nonetheless, I remain convinced that in the first instance our task is to tackle corruption in those places where it occurs. This is one of the reasons why the Swiss government has blocked the accounts of Ben Ali and Mubarak: to help the countries affected to take the legal steps necessary to recover the assets allegedly stolen as quickly as possible.
Since the accounts were frozen, both Egypt and Tunisia have asked Switzerland for legal assistance. So, the reaction of the Swiss government has already proven its worth and that is something we can be proud of.
Micheline Calmy-Rey Switzerland's Federal President and Head of the Federal (SES: E1:F20.SI - news) Department for Foreign Affairs FDFA. Courtsey finance stories from telegraph.co.uk
Few people could have imagined that the people's uprising in Tunisia would have such far-reaching consequences. On January 14, the former President was forced to flee the country. Five days later, on the 19th, the Swiss government froze any assets of the former President, his family and entourage that might be located in Switzerland.
The Swiss government made a similar decision on the evening of February 11, a mere 30 minutes after the resignation of President Mubarak in Egypt. And when the Libyan rulers used force against their own population, the Swiss Government decided on the 24th to freeze any assets of Muammar Gaddafi and his entourage that might be held in Switzerland with immediate effect. Why did Switzerland take these measures and block the assets of former dictators? Why has Switzerland been the first country in all three cases to take this action, moves that have subsequently been emulated by many other countries?
The answer is very simple: because our policy on this matter is absolutely clear. For almost twenty years the Swiss government has been consistently working to ensure that illicitly acquired assets are not invested in the Swiss financial centre. These efforts have long been recognised in specialist circles, and international experts regularly acknowledge that few countries have been as proactive in this area as Switzerland. A specialist of the World Bank recently remarked: “The idea of Switzerland as a safe haven for stolen funds belongs to the past, and, if at all, is best left to crime thrillers.” Although Switzerland is only ranked seventh amongst the world's financial centres, it occupies first place when it comes to the issue of returning stolen funds: in recent years no other country has even come close to repaying as much money derived from illegal activities to the countries of origin as Switzerland. In total 1.7 billion US dollars has been returned.
Is the reason Switzerland has returned more money simply that it accepted more dirty money than other financial centres? Today competition amongst financial centers’ is global. The reputation and credibility of a financial centre play an increasing part in this competition.
It would therefore be naive to believe that Swiss banks can allow themselves the luxury of standards that are less stringent than those of its immediate competitors. Rather, the reasons for our success can be found in the change of attitude that has taken place in Swiss politics. In recent years, the Government and Parliament have tightened existing laws and created new ones: loopholes have been identified and where necessary legislation improved. In many areas Swiss legislation today goes beyond that of many other countries and serves as a model. The latest example is the Act (Taiwan OTC: 3492.TWO - news) on the restitution of illicit assets of politically exposed persons, commonly referred to as the Lex Duvalier. Although it is often in fragile countries that corruption is rampant, these are precisely the ones that are powerless to protect themselves against the intrigues of their rulers. The Swiss law on restitution is the first of its kind in the world: it enables assets that have been illicitly appropriated or embezzled by dictators to be returned to countries that are no longer in a position to use judicial processes to request its return from abroad.
Nonetheless, I remain convinced that in the first instance our task is to tackle corruption in those places where it occurs. This is one of the reasons why the Swiss government has blocked the accounts of Ben Ali and Mubarak: to help the countries affected to take the legal steps necessary to recover the assets allegedly stolen as quickly as possible.
Since the accounts were frozen, both Egypt and Tunisia have asked Switzerland for legal assistance. So, the reaction of the Swiss government has already proven its worth and that is something we can be proud of.
Micheline Calmy-Rey Switzerland's Federal President and Head of the Federal (SES: E1:F20.SI - news) Department for Foreign Affairs FDFA. Courtsey finance stories from telegraph.co.uk
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