New Congressional Hearing: The US is again targeting Switzerland over “Russia’s presence in the Alps”.

For years, Switzerland has been “the preferred destination of Russian oligarchs and corrupt officials to hide their stolen money,” according to the Helsinki Commission’s official statement. In addition, Switzerland “plays a key role in Russia’s circumvention of export controls aimed at ensuring that it cannot replenish its army and continue the war”. The panel also criticized Switzerland for wanting to release most of the CHF 18 million confiscated in the Magnitsky case.

“Switzerland is a popular destination for Russian black money”

Witnesses will discuss “how Switzerland has become a popular target for Russian black money, how Russian corruption in Switzerland has jeopardized U.S. national security and Ukraine’s ability to defend itself, and possible political responses.” The trial builds on the Commission’s “years of work to hold Switzerland accountable for its role in Russian money laundering and corruption”.

Shortly after the start of the Ukraine war, the Helsinki Commission, which was not well known in the USA, stirred up the world with its harsh criticisms of Switzerland: Switzerland was “Putin’s assistant”; The President of Russia and oligarchs close to him have corrupted the Swiss judiciary. Shortly after, Secretary of State Ignazio Cassis complained about the allegations in a phone call with his American counterpart, Antony Blinken.

But since then, the Helsinki Commission has not deviated from its position and has gained importance. At the end of March this year, it became known that the US Department of Justice is investigating a number of Swiss banks for allegedly helping Russian oligarchs circumvent financial sanctions. Some employees of Credit Suisse and UBS are also being spied on by the US government, as Bloomberg reports. Tuesday’s hearing announcement also refers to ongoing investigations into Swiss banks.

This is the subject of the US Senate hearing

Observers expect significant differences from previous hearings. In recent months, Switzerland has come into the limelight for how it is dealing with sanctions against Russia.

In April, G7 countries and EU ambassadors addressed the Federal Council in a joint letter. In it, they primarily criticized the special role of lawyers in the Swiss Money Laundering Act and urged Switzerland to join the oligarch money task force Repo (Russian Elites, Proxies and Oligarchs), which Switzerland continues to reject. The visit of Brian Nelson, the senior US sanctions official, apparently brought nothing tangible.

“People are still dissatisfied with Switzerland because they haven’t adequately enforced sanctions, because Seco hasn’t done everything that can be done, and because Switzerland isn’t cooperating internationally,” says criminal law professor Mark Pieth. The Basel corruption expert is invited to the hearing in Washington DC, but is unable to attend for personal reasons.

Switzerland criticized the claims of the Helsinki Commission

Bern rejects continued criticism. The Department of Economy, Education and Research (EAER) announced that they were aware of the hearing held by the Helsinki Commission upon request, but were not involved. “The allegations made in the invitation have no real basis. “Switzerland consistently applies international money laundering and sanctions standards that have been repeatedly approved and recognized at the international level,” WBF spokesman Markus Spörndli said, referring to international standards for the adoption of sanctions and the fight against money laundering and tax evasion.

So far, Switzerland has blocked 7.5 billion Swiss francs and 15 properties as part of Russian sanctions. The State Secretariat of Economic Affairs (Seco), responsible for sanctions, regularly attends “Freeze and Catch” meetings of the EU task force. An update to the Money Laundering Law is planned, which will provide a centralized record of beneficial owners as in other countries. The draft law is scheduled to be discussed in mid-August.