FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 07 July 2015

The FIFA Scandal and Possible Effects on Swiss Banking Regulations

Written by

As more information comes out regarding FIFA's recent corruption scandal the problem becomes deeper and more complex than ever thought. Out of the 104 bank accounts probed, 53 were related to bribes and money laundering.

These Swiss banks were cooperative in handing over information and allowing authorities to do their job - though other organizations, such as MROS (Money Laundering Reporting Office Switzerland), have claimed they did not do enough to prevent this incident in the first place. Around $150 million in bribes and money laundering has been found so far, and investigations are still ongoing. This amount stated mainly includes the 2010 FIFA World Cup selection and the 2011 FIFA presidential election. Swiss authorities have recently opened investigations into the host election for both the 2018 and 2022 World Cups so this amount is likely to continue to rise.

Considering the magnitude of the issue and the concentration within Swiss Banks, the US has claimed too many loopholes exist within the Swiss system that make it too easy to perform illicit activities. Stiliano Ordolli (shown below), the head of MROS, said that while banks have the opportunity to report any concerns about this sort of activity, it is mostly up to the bank when to do so. He has noted, however, that reports are becoming more common as awareness of the problem grows.

This whole story seems to be a further push for Swiss banks to become a more closed system and more tightly regulated. While Switzerland is a rich country and considered a haven for the fortunes of many, political pressure around Europe and the US has forced them to change their laws. Almost half of Switzerland's imports come from Germany, Italy, and France. Had they refused change and lost favor in Europe, it could cause huge economic setbacks for its citizens, especially on imported goods. The US also forced Swiss banks to hand over information regarding taxes and accounts in recent years, which was previously avoided by the banks. Had they not complied they risked losing their ability to do transactions on Wall Street, hence not allowing them to work with the US dollar. If this had occurred Swiss banks would have been prevented from doing business with not only US banks, but also many others around the world that deal in the US dollar. The FIFA corruption scandal is simply another reason for many to push Switzerland to tighten down on banking regulations to prevent money laundering and illicit activities such as these to take place. While it goes against what the Swiss have stood against for so long, to participate in a global market one must obey global rules.

Click here for Historical News Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Contributors


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
Rising Tide Does Not Lift All Ships
Comments on Feyerabend’s ‘Against Method’, Part II
News Blog
Docking A Huge Cruise Ship Is More Complicated Than You Think
New Seasonal Outlook Updates from NOAA and JAMSTEC - Let's Compare Them.
Infographic Of The Day: Driving Into A Battery Powered Future
Earthquake Risk - Location Matters
Investor Alert: Be On The Lookout For Investment Scams Related To Hurricane Matthew
Lost In Translation: Five Common English Phrases You May Be Using Incorrectly
The Size And Scope Of Samsung's Business
Immigration Is The Top Worry For Britons
People Killed By Russian Airstrikes In Syria
Have You Taken These 4 Simple Steps To Improve Your Trading?
14 October 2016: ECRI's WLI Growth Index Insignificantly Declines
Mom Breaks Down In Tears When Son With Autism Meets Service Dog
Rail Week Ending 15 October 2016 Paints A Negative Economic View
Investing Blog
FinTech Is Taking A Bite Out Of Banks
Options Early Assignment - Should You Worry?
Opinion Blog
US 2016 Election: Will US-China Relations Change
Prop. 51 Versus A State-Owned Bank: How California Can Save $10 Billion On A $9 Billion Loan
Precious Metals Blog
How Will The Election Outcome Impact Precious Metals?
Live Markets
21Oct2016 Market Close: Major US Indexes Close Flat On Low Volume, Crude Prices Resume Climb, US Dollar Stabilizes In Mid 98 Handle, Yes, Most Investors Are Worried Which Way This Market Will Go
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved