One year after top financial crimefighter exits, Switzerland beefs up MROS resources and is poised to expand its powers even though it hasn't found a replacement to head the agency.

«The year 2020 has been an intense year for MROS,» Switzerland’s money laundering reporting office (MROS) wrote with great understatement in its annual report, released recently. The biggest bang was the sudden exit of respected crimefighter Daniel Thelesklaf last June.

The Swiss lawyer left with harsh words for Switzerland’s ability to combat crime within its banking system. Official data seems to bear him out: Last year, MROS was able to get through less than 85 percent of the 5,334 reports of suspicious activity reports that were lodged.

Adding Specialists

The overwhelming majority last year – nearly 90 percent – came from banks, while as in past years less than three percent came from the legal or «other» professions, which would include consultants, accountants, trust companies, notaries, or commodities outfits.

The agency hired 12 additional staff last year to bring its total headcount to 48 employees, it said. This follows the adoption last January of software, dubbed goAML, developed by the United Nations.

Rocky Rollout

MROS admitted the rollout had been rocky, required several adaptations, and that it is not yet satisfied with the quality of information transmitted. «This remains a priority area of concern for MROS,» it said.

On his way out, Thelesklaf had criticized the agency as as outdated, inefficient, and outgunned at spotting and catching criminal money being rinsed through offshore bank accounts. One year after his sudden exit, the Swiss lawyer still hasn’t been replaced.

A spokesman for the Swiss federal police, where MROS sits, didn’t comment on the timeline to replace Thelesklaf, who headed for a post with the U.N. recently, or on potential organizational changes urged by Thelesklaf and other observers. Olivier Longchamp and Gabriela Kolly are standing in temporarily.

Scandal Backdrop

The vacancy comes against the backdrop of several major scandals including Venezuela's state-controlled oil firm PDVSA, 1MDB of Malaysia and soccer body FIFA. The ex-CEO of now-defunct Falcon Private Bank is due to stand trial on money laundering charges later this year, and Swiss prosecutors have charged Credit Suisse in a drug money rinsing scheme.

Though other agencies including Finma have warned of a rising threat due to technology, Swiss politicians have shown little inclination to tackle reforms, as finews.com reported.

Accused Of Loopholes

Earlier this year, Swiss lawmakers passed a revision to existing money laundering rules after two years of debate. The revision drew fierce criticism for allowing loopholes for lawyers and other key advisers to the wealthy.

Switzerland’s reluctance to include these «helpers» to the financial industry in anti-money laundering efforts doesn’t bode well for its next exam by the Financial Action Task Force, or FATF. Switzerland came away with an insufficient rating in cooperating internationally in its last exam five years ago. The follow-up exam is expected sometime in 2022.

Expanded Powers

MROS pointed to its expanded powers: from June, it can request information from Swiss banks and other intermediaries if asked to do so by a foreign partner FIU (foreign intelligence unit) – even if the Swiss entity has not submitted a report of suspected suspicious activity.

The agency said this is good for banks because it can now «draw their attention to potential risks on their books that have been ignored so far, thereby increasing the level of security in Switzerland.»