G-7 put pressure on Switzerland in a letter

In a letter to the Federal Council, the ambassadors of the G7 states accuse Switzerland of failing to sufficiently implement sanctions against Russian oligarchs. The “Tagesanzeiger” has the whole letter. Until now, only the existence of the letter was known.

The letter was signed by ambassadors Michael Flügger from Germany, Scott C. Miller from the US, Frédéric Journès from France, Silvio Mignano from Italy, Patrick Wittmann from Canada, James Squire from the UK, Fujiyama Yoshinori from Japan and Petro Mavromichalis from the EU , who has only observer status with the G-7.

First praise, then harsh criticism

Only the beginning of the letter is polite: the G-7 group writes that they would recognize “Switzerland’s response to the Russian invasion more than a year ago.” Switzerland’s moves – to join sanctions, extend sanctions, freeze assets and impose a price cap on Russian oil – are “both commendable and important”.

And then the criticism begins: among other things, concerns have arisen that Swiss regulations on data protection in the banking sector “could also be used to cover up the traces of parked assets (‹financial shelter›)”. There are also concerns that privacy protections will deter law enforcement from investigating illegal financial structures.

After the G-7 representatives spoke with legal organizations and law enforcement agencies in Bern, the Swiss government was urged “to take further steps to clarify the distinction between protecting the privacy of law-seekers and those who abuse privacy.” ». The Tagesanzeiger writes that it concerns the Russian elite and Russian business people.

Too little money frozen?

Officials at the State Secretariat of Economic Affairs (Seco) previously noted that they cannot freeze assets that come from persons with dual citizenship, persons legally residing in Switzerland, and persons who have legal ties to Swiss companies. Likewise, no assets could be frozen that indirectly controlled assets through corporate constructions.

This is doubted by the G-7 group: the 7.5 billion frozen Russian funds are not enough. The ambassadors write: “Independent sources estimate that the total amount held in Switzerland could be significantly higher.” The “independent sources” are not explained.

Then it read: “We share the concern that these loopholes endanger Switzerland’s reputation.” They suggest that the Federal Council actively investigate suspicious financial structures, increase investigative resources and “consider further guidance for compliance.”

Participate in the repo task force

Participating in the repo task force is also required. The task force’s task is to track down, freeze or confiscate hidden funds of the Russian elite and Russian businessmen.

Until now, only the G-7 countries and Australia belonged to the Repo Task Force. But Switzerland has so far decided not to fully participate in the task force.

Switzerland summons the embassy and contradicts the letter

The Federal Council has handed over the G-7 letter to Seco, the NZZ reports.

The relevant departments of the federal administration contradict the ambassador’s letter point by point in a statement, writes the “Tagesanzeiger”. The economics department writes that the allegations in the G-7 letter are not correct. Switzerland will now invite all ambassadors for an enlightening debate.

In particular, Seco rejects the allegation that frozen Russian assets of CHF 7.5 billion are too low. After all, the amount of assets frozen by Switzerland corresponds to more than a third of the total of 21.5 billion assets frozen across the EU.

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