Swiss Banks Freeze Accounts

Berne, May 24. (UNI): Switzerland has frozen 82 bank accounts of individuals linked with Osama Bin Laden, Al Qaeda and the Taliban since the 9/11 incidents in the United States, thus making a significant contribution in the global war on terrorism.

This had been done in line with the United Nations resolution 1267, approved by the General Assembly to relentlessly fight the menace of terrorism worldwide, according to Mr William Frei, Deputy Head of the Political Division (Finances), in the Swiss Government.

The total amount frozen was to the tune of $25.5 million, which was nearly one third of the assets of various terrorist groups seized worldwide since the gruesome terrorist strikes in the US, Mr Frei told a group of visiting Indian journalists.

Strongly refuting allegations that Switzerland was providing a safe haven to the illegal funds of terrorist groups, he said Berne was cooperating fully with the international community in the fight against terrorism.

Meanwhile, top government sources said Switzerland was tightening its provisions against money laundering.

"Identifying the origin of the funds and the identity of the persons behind them are the two key defensive measures we are taking to prevent money laundering or the financing of terrorism and organised crime," they added.

The sources said rules stipulating the care to be exercised when dealing with the assets of politically exposed persons (PEP) were intended to avoid potentates shifting funds from their countries to Switzerland. International cooperation was also being expanded.

"But Swiss banking secrecy, the purpose of which is to protect banks' customers is not to be called into question. It does not apply unreservedly, however. It is revoked if criminal activities such as terrorism, organised crime and tax fraud are suspected," the sources said.

They explained that the Swiss banking secrecy was not absolute and did not apply in cases of prosecution. There was no such thing as an "anonymous account" in Switzerland.

There were, however, "numbered accounts", which could be savings, deposit or securities accounts where the name of the creditor or depositor had been replaced with a number.

The bank, within the framework of its due diligence obligations, was nevertheless required to know the identity of the account holder as well as the true beneficial owner.