The Swiss financial market supervisors have taken a leaf out of the book of the U.S. judiciary: in their quest to fight money laundering, Finma is increasingly targeting individuals to make the pitfalls more comprehensible for members of the banking world.

The U.S. authorities have experience galore in the naming and shaming of individuals – a proven tool to stamp out misdemeanors in industries such as banking. Former UBS manager Raoul Weil and ex-Credit Suisse man Rolf Boegli are well-known victims of this practice.

Targeting individuals to stop a specific unwanted activity has become a favorite of Mark Branson as well. The boss of the Swiss financial market supervisory authority Finma is a keen adherent of naming and shaming. The first victim of the new, tougher tactic by the Bern-based agency was Andreas Waespi, the former boss of Bank Coop. Two years ago, Finma enforced an occupational ban against the banker and made its verdict public.

People Violate Laws, Not Companies

The authority has made it its priority to root out money laundering, in particular in the business with clients from emerging markets. Part of the tactic used is ‘name and shame’, Branson told «24 Heures» in an interview.

«It is individuals who commit offenses, not institutions,» Branson said. That’s why he is focusing on investigations of natural persons and on the dissuasive effect of the resulting verdicts.

Falcon and BSI

Hence, the authority’s most recent sanctions imposed on Falcon Private Bank in connection with the corruption scandal involving the 1MDB state fund of Malaysia. Enforcement procedures against two former managers of the company are part of the action.

In its case against BSI, also within the scope of the 1MDB scandal, Finma also opened procedures against two former employees of the Ticino-based private bank. Hanspeter Brunner, the bank’s former Asia boss, was one of two. Finma is evaluating whether his actions violated supervisory regulation.

Surprisingly, Swiss banking doesn’t seem overly concerned about the use of typical U.S. tools such as naming and shaming of individual perpetrators. The Swiss Bankers Association recently published a commentary in its online magazine, which stated that the elimination of each and every case of money laundering wouldn’t be possible, adding: «That’s when penal law has to bite. And practical experience shows that in reality it does as well.»