SVIT rejects money laundering "speculations

Transparency International Switzerland had - as reported last week - published a study entitled "Open doors for illegal funds - loopholes for money laundering in the Swiss real estate sector". However, this study does not provide any facts about the alleged extent of money laundering in the Swiss real estate market, states SVIT Switzerland. Rather, it is based on "conjecture" and claims "parallels to foreign real estate markets". The fact is that there are no reliable indications of the "number of unreported cases in the Swiss real estate market". In addition, there has never been a conviction for a violation of the Money Laundering Act in suspected cases.

The association emphasizes that cash transactions - even those below CHF 100,000 - are not common practice in real estate trading. It therefore recommends its members not to accept cash in connection with real estate transactions or to broker transactions involving cash. Financial transactions in connection with real estate transactions should be handled by the buyer or seller through a Swiss financial institution. The strict requirements for financial intermediaries ensure compliance with the due diligence obligation and an extension of the money laundering legislation is therefore not advisable, the report continues. This would "lead to duplications without any apparent benefit", says SVIT Switzerland.

Transparency International further complains that in the Swiss real estate market, purchase prices are being certified as too low or too high. The association points out that this is already a punishable offense. Overall, all the conclusions and the required measures of the organization are "no more than politically motivated demands for further regulation of a functioning economic sector". The implemented instruments, correctly and responsibly applied, are absolutely sufficient to prevent money laundering, says SVIT Switzerland.