Switzerland

People

Switzerland is predominantly a destination and transit country for human trafficking, with victims often found in industries such as prostitution, construction, food services and agriculture. Despite efforts to combat this crime, many cases go unreported, and the country has faced criticism for its lack of effective action against human trafficking. Additionally, there is a lack of national standardized identification and transfer procedures to protect victims from possible criminal prosecution. The victims of human trafficking in Switzerland primarily come from Eastern Europe. Some investigations have also involved victims and perpetrators from Asia and Western Africa, although perpetrators can also be Swiss citizens.

Switzerland is both a destination and transit country for human smuggling. The market is not particularly extensive but reportedly on the rise. The majority of smuggled individuals arrive via the Balkan and Adriatic routes and enter Switzerland by road, rail or air. Since COVID-19 restrictions were lifted, unauthorized entries – as well as the number of victims – have surged significantly. Swiss border control deals regularly with human smuggling cases, primarily because of Switzerland's central geographical location within Europe. Authorities have apprehended many Afghan and Moroccan nationals, and the ongoing war in Ukraine has raised concerns over the heightened risk of human smuggling in the region. Members of organized crime groups involved in human smuggling often have ethnic connections to the smuggled people. Ethnic Albanian, Syrian and Eritrean groups, as well as groups from the Middle East, China, Africa and Sri Lanka, have been reported to be actively involved in human smuggling in Switzerland. Smuggling into Switzerland increasingly involves higher-quality forged documents, produced in workshops in South Eastern and Eastern Europe.

Although there is limited evidence of extortion and protection racketeering in the country, there have been claims of these crimes being carried out by Italian mafia members at the border with Switzerland.

Trade

Although reports and investigations have emerged over the years suggesting a worrying trend in the import of illegal arms into the country since the early 2010s, Switzerland is generally known for its low levels of firearms and ammunition smuggling, with few convictions for illegal trading, despite having a high rate of private gun ownership. The country serves as an arms trafficking point for Italian mafia groups, who obtain weapons by importing them directly from Switzerland or purchasing them from professional networks that specialize in their procurement.

Counterfeiting has increased in Switzerland in recent years, with consumers paying for counterfeit ‘Swiss’ products such as watches, household appliances and medicines. Swiss companies have suffered significant losses to this illicit market, with the jewellery and watch industries being the most affected, followed by electronics, metal and machinery. Clothing and shoes with Swiss labels are also subject to counterfeiting. The majority of counterfeit products sold in the country were produced in China, Singapore and Turkey, with India having a particular focus on counterfeit medicines. The increased seizures of counterfeit products demonstrate that the COVID-19 pandemic has led to a surge in online shopping, resulting in a higher volume of counterfeit medicines being traded. With regards to excisable goods, even though the consumption of contraband tobacco products has decreased in the country in recent years, the illicit trade of such products remains prevalent, resulting in major losses in unpaid tax revenues to the government. Germany and Italy are the usual source countries of contraband (and also counterfeit) cigarettes into Switzerland.

Environment

Switzerland is generally considered a low-risk country for illegal timber harvesting and logging, although valuable species are occasionally stolen. Even though Switzerland is not a source country for illegal timber, it is a destination country in Europe, with most of the illegal timber arriving with proper documentation. The majority of confiscated items, which typically arrive via airports, originate from Thailand and Singapore. However, there is no evidence to suggest that organized crime groups are involved in the timber trade within Switzerland. With respect to wildlife crimes, Switzerland is a transit and destination country, with occasional large seizures but no consolidated market under the control of organized crime groups. The country has a demand for caviar, which attracts illegal caviar smuggling rings from Eastern Europe and Russia. Additionally, Switzerland has reptile markets where illegal wildlife traders sell live reptiles and amphibians. Most of the illegal reptile products seized in the EU were legally imported by Switzerland but did not have a re-export permit. The country is also a destination for African bushmeat. In terms of large seizures, criminals are mainly foreign nationals collaborating with Swiss actors.

Switzerland is one of the world’s largest importers of gold. It processes thousands of tonnes per year, mainly from Argentina, Chile, the UAE and Peru, with an opaque trade that makes it difficult to estimate the percentage of illicit trade. The country has few significant cases of illegal trade in non-renewable resources, and violence associated with this sector is minimal. China has been implicated as an origin country for smuggled gold, and the UAE acquires gold illegally from countries such as Sudan and the Democratic Republic of Congo to export to Switzerland. Switzerland also contributes to the expansion of illegal mining in Latin America, with criminal actors involved in gold trafficking engaging in drug trafficking, human trafficking and money laundering. The lack of regulation and transparency in commodities trading enables Swiss companies to facilitate illicit commodities trade, such as the smuggling of Libyan oil by a network operating in Libya, Italy and Malta.

Drugs

Switzerland is predominantly a destination country for heroin, which is mainly sold and distributed by Albanian groups. However, Italian mafias are also involved in the trade. Heroin is primarily produced in Afghanistan, smuggled to Turkey and then to Switzerland via the Western Balkans. In terms of consumption, almost three quarters of heroin addicts are in substitution therapy – the highest ratio globally. Despite the stabilization of the heroin market in Switzerland, the direct and indirect impact on society remains high in terms of social costs associated with its management.

Switzerland is a significant destination country for cocaine, with the drug mainly distributed by West African and Italian networks, including Nigerians, as well as dealers from Gambia, Guinea, Latin America, Albania and Switzerland. Cocaine is transported from South America through West Africa and enters Switzerland through Spain and/or the Netherlands, hidden in luggage or vehicles. Cocaine is mostly sold on the street, privately or through the internet. Switzerland has some of the highest per capita cocaine consumption rates in Europe, with Zurich, St. Gallen, Geneva and Basel among the top ten European cities. Recent wastewater analysis suggests that cocaine consumption in Switzerland remains stable compared to pre-pandemic levels. Cannabis continues to be the most commonly used illegal substance in Switzerland, with at least half of it being produced domestically. With the COVID-19 pandemic, part of the market reportedly moved online, potentially exposing consumers to criminal networks. Swiss authorities have also reported an increase in the seizure of parcels containing large quantities of cannabis en route from African countries to the UK, often paid for with cryptocurrency. Detection of illegal cannabis is difficult in Switzerland, as the legal and illegal cannabis trades often overlap and users tend to consume both legal and illegal products, depending on the THC level. Low-tetrahydrocannabinol cannabis was decriminalized in Switzerland in 2012 and, since then, the country has shown steady commitment to the regulation of cannabis for recreational or medical purposes as a new solution to protect public health and fight the illegal market. With that in mind, and following increasing demands for authorization, Switzerland legalized medical cannabis in 2021. Moreover, Swiss cities such as Basel and Zurich are piloting the legal distribution of recreational cannabis to investigate the impacts of legalization on consumer behaviour.

Switzerland is mainly a destination country for synthetic drugs, with ecstasy (MDMA) being one of the most popular illicit drugs. The market for synthetic drugs appears to be growing, with an increase in the consumption of amphetamine and methamphetamine, according to wastewater analysis. Criminal actors vary depending on the type of synthetic drug, with some consumers trafficking the drugs or buying them from traffickers and selling them across their own network. The drugs are primarily produced in the Netherlands, northern Belgium, Eastern Europe, Asia, Thailand or the Philippines, with very little synthetic drug production in Switzerland. The consumption of LSD in Swiss cities is a recent trend, and the involved actors, supply structures and market size are still undetermined.

Cyber Crimes

In 2022, Switzerland saw an increase in reports related to cyber-dependent crimes, with the country recording a high number of such incidents. Ransomware attacks have been recurrent during this period, and experts predict this trend will continue to grow. It is believed that the actual figures of cybercrime are higher, as many organizations choose not to report such incidents to avoid damaging their reputation. Many large firms have become targets of cyber-attacks through vulnerable servers and IT systems. Illicit businesses are also increasingly using crypto technologies in Switzerland, with many actors using cryptocurrencies after being expelled from private banks due to reputational fears related to white-collar crime. Financial crimes involving the possible misappropriation of digital funds have also been reported, with both clients and users of cryptocurrency exchange platforms suspected of misappropriating funds. Additionally, there has been a rise in ransomware attacks that demand cryptocurrency as ransom.

Financial Crimes

Switzerland has a well-known reputation as a financial secrecy hub, where individuals from around the world come together to hide their money from tax authorities and investigators. The country also has an issue with corruption in the financial sector, which involves enablers such as lawyers, notaries and real estate agents assisting criminals in laundering their illicit funds. Despite authorities taking measures and implementing changes to the regulatory frameworks, journalistic investigations such as the Pandora Papers and Suisse Secrets have revealed the active role of Swiss banks and wealth advisors in helping alleged criminals hide their wealth. Additionally, customs or tax fraud involving so-called trade mispricing is also occurring in Switzerland.

Recent statistics show that cyber-enabled offences have increased in the past few years, with the majority related to financial crime. The most registered offence is non-delivery of goods that have already been paid for on classified ad platforms, followed by the misuse of online payment systems or personal identification data to commit fraud.

Criminal Actors

Foreign criminal actors such as the Italian mafia have been active in Switzerland since the 1970s, and some may now be composed of second-generation diaspora, blurring the lines between foreign and local actors. Additionally, foreign criminal groups, such as Balkan mafias, dominate the Swiss criminal markets for drugs, human trafficking, human smuggling and arms smuggling. West African gangs, particularly Nigerian criminal associations, also have established networks in neighbouring France and Italy, with increasing influence in recent decades. With few domestic criminal networks, the Swiss criminal market is largely controlled by foreign actors.

Switzerland's private sector is also affected by corruption, with enablers in the financial sector alongside lawyers, notaries and real estate agents to assist criminals in laundering their illicit funds. Major players in the pharmaceutical and commodities industries, as well as international sports federations, are all at high risk of corruption. Despite laws and codes of conduct, corruption remains a significant challenge for Switzerland, as evidenced by data leaks such as the Panama Papers and the Pandora Papers. There is no evidence to suggest that state-embedded criminal actors are a problem in Switzerland or that they exert any influence on the country, despite a few sporadic cases of corruption and widespread concerns over weak integrity and lobbying regulations. With regards to mafia-style groups, Swiss law enforcement officials have reported that outlaw motorcycle clubs operate in Switzerland and are involved in various criminal activities, including arms, drug and human trafficking, as well as extortion of local businesses. These groups often use violence and weapons to control their territories.

Leadership and governance

Switzerland is widely recognized as one of the most stable countries in the world, with a government that is highly trusted by its citizens. The democratic process is seen as independent and competent, with no significant issues of corruption or malfeasance. While certain sectors may have weak governance, this does not affect overall public trust in the government. The Swiss political system is transparent and accountable, but it is still vulnerable to corruption. The anti-corruption body lacks the necessary expertise, budget and strategy, leading to scandals in state-owned entities. Nepotism and trading in influence are concerns in certain sectors, such as sports, NGOs and multinational enterprises.

Switzerland is actively involved in the international community in the fight against transnational organized crime. The country has ratified the main international treaties and signed police cooperation treaties with Italy and Germany. Switzerland also continues to have a close relationship with the EU through bilateral agreements regulating a vast array of subjects, including easier market access and cross-border cooperation on asylum, security, the environment and culture. It has also created the legal basis to cooperate with the European Public Prosecutor’s Office, and passed new legislation to share police data in Europe to improve border controls. However, there are still gaps in Switzerland's international cooperation on anti-money laundering efforts. Swiss authorities need to adopt a systematic approach to collecting statistics to evaluate the effectiveness and efficiency of their anti-money laundering measures. Switzerland has various national policies and laws in place to combat human trafficking, drug trafficking and cybercrime. The country has also adopted revised arms legislation in line with new EU regulations, despite having relatively liberal gun laws. The Swiss government is committed to eradicating human trafficking, but there are concerns over a lack of federal coordination in their national action plan. Switzerland has made progress in regulating exports and timber products and curbing illicit financial flows, but more needs to be done to prevent funds of illicit origin from being deposited in Swiss banks. Switzerland has increased penalties for supporting or participating in a criminal organization, including for offences committed outside of the country, indicating a shift towards prioritizing the investigation and prosecution of domestic and transnational organized crime.

Criminal justice and security

At present, Switzerland's major political parties nominate supreme court candidates from their own ranks, reflecting their relative strength in parliament. Judges are required to seek re-election by lawmakers every six years. This unusual overlap between the courts and politics is an institutional flaw that renders the judiciary vulnerable to political pressure. In addition, judges traditionally contribute part of their salaries to their respective parties. Switzerland's prison population rate is moderate, with foreign nationals constituting the majority of inmates. There is no evidence of overcrowding, inhumane conditions or organized crime controlling the penitentiary system.

The Swiss federal police coordinates international criminal investigations, including those pertaining to organized crime, money laundering and terrorism. Special units within the agency focus on human trafficking, human smuggling and financial crime. The Swiss government recently enacted legislation to share police data with European law enforcement agencies to enhance border controls and combat terrorism and organized crime. The police has also developed a new strategy that prioritizes combating mafia-style groups. Surveys consistently show that the Swiss police is the most trusted government institution, followed by the courts.

Switzerland's location and permissive tax regulations have made it an attractive market for organized crime, particularly in the areas of narcotics, human trafficking and arms trafficking. Switzerland has ramped up border controls in coordination with the EU’s Entry-Exit System efforts and is working to share police data with European law enforcement agencies. The Swiss border guard collaborates with other agencies on information sharing and training programmes and is linked to the special formation of the federal customs administration for more complex, cross-regional investigations.

Economic and financial environment

Switzerland's anti-money laundering body plays a critical role in analyzing and reporting suspicious activity. However, the country has faced criticism for its lack of resilience to money laundering, largely due to its strong bank secrecy legislation. Recent legislative efforts to improve anti-money laundering measures have also been criticized for falling short of necessary reforms, particularly in terms of transparency and accountability of financial intermediaries, trustees and notaries.

Switzerland's economic regulatory environment aims to regulate the formation of cartels that have socially or economically harmful effects. Economic crime cases are handled by the police and prosecutor's office, with certain administrative units prosecuting on behalf of the prosecutor's office in specific areas such as white-collar crime. Despite ongoing issues with money laundering and bank secrecy, Switzerland is considered one of the freest economies in the world.

Civil society and social protection

Civil society organizations play a more significant role than the government in providing support facilities and programmes for victims of organized crime in Switzerland. While the country has a fairly robust support framework for victims of trafficking, criticism remains focused on the specific vulnerabilities of smuggled individuals and refugee victims, as well as inadequate identification procedures. In fact, victim support programmes primarily focus on the needs of women and children, and male victims of human trafficking are comparatively disadvantaged. While the government has facilitated additional assistance for foreign victims of trafficking, including financial support and residence permits, few long-term residence permits were granted, and authorities often provided victims with repatriation assistance instead. The jurisdiction for providing protection to victims remained with cantonal authorities, and victim care in Switzerland differed across the cantons.

Prevention is one of the three pillars of Switzerland's strategy to combat organized crime. However, there is a lack of effective protection for whistle-blowers, in both the public and private sectors; this is widely criticized, although legal frameworks on a sub-national level have shown some improvement.

Switzerland is known for being a hub for international NGOs, with a strong and independent civil society sector, including a reputable media landscape. However, few civil society organizations focus on Switzerland itself, and most of the support is limited to victims of human trafficking and sexual exploitation. NGOs generally operate without restrictions, although some groups face surveillance from the government. Despite having a high level of media freedom, authorities restrict access to government documents, hindering data and investigative journalism. Print media in Switzerland is declining due to the widespread digitization of media sources, resulting in cost-cutting and the closure of several local newspapers. However, many digital-only media outlets have emerged in recent years.