12.01.2012. OECD recognises Switzerland’s commitment to the fight against foreign bribery and recommends further improvements. The OECD Working Group on Bribery congratulates Switzerland on its first conviction of a company for foreign bribery and recommends that it continue its enforcement efforts. However, the OECD is concerned that there has been only one other conviction, of an individual, for foreign bribery since Switzerland enacted the offence in 2000. The report notes that Switzerland is particularly exposed to the risks of bribery of foreign public officials due to its important financial sector and the large number of multinational enterprises based there.

The OECD Working Group on Bribery has just completed its evaluation of Switzerland’s implementation of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and related instruments.

The Working Group recommends that Switzerland:

·    Better equip law enforcement authorities by way of specialised training on the enforcement of corporate criminal liability; 
·    Establish systematic mechanisms allowing for the exclusion of companies convicted of corruption from public procurement and official development assistance contracts;
·    Review its policy concerning small facilitation payments to foreign public officials;
·    Undertake awareness raising on the risks of foreign bribery that is even more targeted towards Swiss SMEs that are active in foreign markets; 
·    Adopt a regulatory framework to protect whistleblowers in the private sector that report in good faith and on reasonable grounds suspected acts of foreign bribery.

The report also highlights positive aspects of Switzerland’s efforts to combat foreign bribery, and notes in particular its proactive policy on the confiscation of the bribe and proceeds of foreign bribery, as well as the restitution of illicit assets that are held in Switzerland. The Working Group congratulates Switzerland for its effort to respond to requests for mutual legal assistance and considers that these efforts provide a significant contribution to enforcement actions against foreign bribery in other jurisdictions. The Group also welcomes the recent introduction of measures to facilitate detection of suspected foreign bribery cases by law enforcement authorities, such as the introduction of a general obligation for most federal officials to report allegations of foreign bribery, as well as a framework to protect federal officials who report in good faith.

The Working Group notes with interest the extension of external auditing requirements to a larger number of categories of legal entities and also notes the efforts to consult and train auditors and accountants on the issue of the detection of fraud associated with bribery. In general, the Group notes that Switzerland has made significant efforts, in partnership with professional associations and civil society, to raise awareness in the business, accounting and auditing sectors. In this regard, the Working Group encourages Switzerland to undertake even more focused awareness raising with SMEs, on internal control mechanisms to prevent the payment of bribes to foreign public officials. In relation to external audit, the Group also recommends that Switzerland require external auditors to report allegations of foreign bribery to competent authorities outside of the company. In addition, the Group considers that, given the importance of the country in the international economy and the number of influential Swiss companies, Switzerland should undertake a regular review of its policy in relation to small facilitation payments.

The report and its recommendations reflect findings of experts from Austria and Hungary and were adopted by the Working Group on Bribery. Switzerland will submit a written report on the implementation of all recommendations within two years. The Phase 3 report is based on legislation and other materials provided by Switzerland, as well as the information obtained by the evaluation team during the three-day on-site visit to Bern from 28 to 30 June 2011, during which the evaluation team met representatives from the federal and cantonal administrations, the private sector and civil society.

Source: OECD Anti-Corruption Division

References

OECD (2011): Phase 3 Report on Implementing the OECD Anti-Bribery Convention in Switzerland. Working Group on Bribery. December. Paris, published January 12, 2012.

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