1998 International Narcotics Control Strategy Report

Bureau for International Narcotics and Law Enforcement Affairs
United States Department of State
February 26, 1999

SWITZERLAND

I. Summary

Like other European countries, Switzerland has a significant problem with illicit drug use. The government continues to evaluate, refine and consolidate its four-pillar counternarcotics policy focusing on prevention, treatment, harm reduction and law enforcement. Voters rejected two popular initiatives that would have significantly changed this policy, thus indicating that a national majority in support of this four-pillar policy has emerged. The Swiss Government plans to continue its heroin prescription program as a therapy form for hard-core addicts. Switzerland remains an important drug transit country and a target for money laundering operations. However, more effective legislation and vigorous law enforcement are making it more difficult to launder money and have led to significant seizures of drug-related assets. The Swiss government has signed and is expected to ratify the 1988 UN Drug Convention with reservations in the near future.

II. Status of Country

The Swiss government faces a serious illicit drug problem. On a per capita basis, Switzerland has an unusually large number of drug addicts--roughly 30,000 out of a total population of 7.1 million. Most of these individuals are users of heroin and/or cocaine. Marijuana consumption continues to increase while the abuse of ecstasy has decreased slightly.

Switzerland is a prominent producer of legitimate pharmaceutical drugs. The Swiss government has an effective precursor chemical regime in place and adheres to the 1971 UN Convention on Psychotropic Substances.

Switzerland has long been an attractive target for money laundering due to the discretion of Swiss financial institutions, the absence of currency controls, and the strength of the Swiss franc. However, by enforcing comprehensive legislation, Swiss authorities are making inroads against money laundering and seizing significant drug-related assets.

III. Country Actions Against Drugs in 1998

Policy Initiatives. In light of increasing drug-related problems, Switzerland intensified its counternarcotics efforts in 1991 with a new policy initiative based on four pillars: prevention, treatment, harm reduction and law enforcement. Following rejection of two popular initiatives, a national majority in support of this drug policy has emerged and Switzerland continues to evaluate, refine and consolidate this comprehensive program.

On April 1, 1998 the Swiss government enacted an additional law to combat money laundering. It extends the obligation to report suspicious transactions to non-banking financial institutions. The Swiss government has also set up a Money Laundering Reporting Office.

Switzerland has a federal system of government and the 26 cantons (states) are responsible for implementing drug policy and for prosecuting narcotics and money laundering offenses as well as organized crime. As a first step to better coordinate strategies and initiatives among cantons and between the police and health and welfare agencies, the Swiss government has established a National Drug Committee.

The Council of States (upper house) has also passed a bill to make prosecution of organized and white-collar crime more efficient and effective. The National Council (lower house) is also expected to approve the bill.

Accomplishments. Even though the drug addict population in other European countries is growing, Switzerland has been able to stabilize the size of its addict population. Through therapy and treatment programs, the physical and mental well being of addicts has improved and criminality has been reduced. Swiss officials credit needle exchange programs with reducing drug- related AIDS and hepatitis infections. Drug-related mortality has declined. The open drug scenes have been virtually eliminated.

Law Enforcement Efforts. Swiss policy is heavily weighted toward law enforcement and the Swiss devote considerable resources to the war on drugs. In 1989, the Swiss had only seven staff positions in the Central Office to Combat Drug-related and Organized Crime. Today, the staff numbers 90 and further expansion is planned. To improve efficiency, Switzerland is also expanding the jurisdiction of the federal government and has set up a National Drug Committee and a Money Laundering Reporting Office.

During the past few years, about 250 cannabis or "hemp" shops have sprung up throughout Switzerland. They sell a variety of cannabis products: tea, oil, paper, textiles and so-called sachets. Supposedly sold to freshen-up closets and drawers, the sachets contain good quality marijuana suitable for smoking.

In a landmark case in October 1998, a Zurich court sentenced a "hemp" shop owner to a $14,500 fine and forfeiture of his profits. He was also given a 14-month suspended jail sentence. The shop owner has appealed the decision. If the decision is upheld, it could lead to the closure of the "hemp" shops.

Corruption. Although there have been instances in which public officials were allegedly involved in corruption related to narcotics trafficking, such cases are very rare.

Agreements and Treaties. On September 10, 1997, a new U.S.-Swiss Extradition Treaty came into force. This Treaty simplifies extradition proceedings and permits extradition for any unlawful act punishable by imprisonment in both countries.

Switzerland has been re-elected to the UN Commission on Narcotic Drugs (CND). It supports the UN Drug Control Program (UNDCP) and is a major donor to the UNDCP Fund. Switzerland works closely with the UN International Narcotics Board (INCB), the World Health Organization (WHO), UNESCO as well as with the Council of Europe's Pompidou Group.

Switzerland plans to ratify the 1988 UN Drug Convention with reservations in the near future and has already adopted legal instruments that allow it to implement the most important provisions of the convention.

Switzerland has been a party to the 1971 UN Convention on Psychotropic Substances since 1996. The government intends to conform national law to the Chemical Action Task Force (CATF) recommendations and new European Union regulations.

Cultivation and Production. While Switzerland is not a significant producer of narcotics, local marijuana cultivation apparently meets domestic demand and Switzerland has become a modest exporter of hashish.

According to the Swiss narcotics law, cannabis cultivation is legal if the harvest is not destined for narcotics production. Cannabis farmers are even subsidized by the government as long as their plants contain less than 0.3 percent THC. About 300 tons of cannabis are cultivated annually and cannabis products have become a million franc industry. Figures on the extent of illegal cultivation are not available. However, police acknowledge that they had underestimated the seriousness of the problem.

Drug Flow/Transit. Switzerland is an important connecting point for flights from Asia, the Middle East and Africa and attracts drug traffickers from these regions. Most of the drugs are bound for other European countries, although some is consumed in Switzerland.

Domestic Programs. Since 1991, Switzerland's counternarcotics efforts have been based on four pillars: prevention, treatment, harm reduction and law enforcement. A national majority in support of this policy has emerged and Switzerland continues to refine and consolidate this program.

Switzerland focuses heavily on prevention and early intervention to keep occasional users from developing an addiction. It spends $22 - 25.5 million annually on programs aimed primarily at the young that seek to encourage abstinence from drug use and an overall healthy lifestyle. Switzerland has always been at the forefront of new developments in treatment and rehabilitation programs. It has over 100 public and private institutions that provide drug therapy. With a budget of $160.6 - 190 million, it has the capacity to provide therapy to two-thirds of its approximately 30,000 addicts.

An official assessment of the heroin prescription program cites significant improvements in the social and health conditions of the hard-core addicts and a significant reduction in criminality. In light of this assessment, the Swiss Parliament passed a Federal Decree valid until 2004 that provides a legal basis for continuation of the program. It is estimated that about 10 percent of the addict population fulfill the eligibility criteria for acceptance into the program.

The Executive Director of UNDCP reportedly confirmed during a visit to Switzerland in February 1998 that the Heroin Prescription Program is consistent with UN principles. A WHO assessment is underway. However, on July 15, 1998 ONDCP Director Barry McCaffrey visited Switzerland to meet with officials responsible for narcotics policy and to see firsthand the heroin distribution program. General McCaffrey made clear our concern about this program, noting that while such policies may bring short-term benefits, they may in the long run prove detrimental to the well-being of Swiss society. He urged Swiss officials to allow full international scientific scrutiny of the heroin program.

Regarding harm reduction, Switzerland was among the first countries to adopt a needle exchange program to combat the spread of the HIV virus. The Swiss Federal Government supports an extensive needle distribution program involving injection rooms, pharmacies, needle exchange buses and public needle dispensers. Swiss officials credit this program and other housing and employment programs with reducing the prevalence of HIV and hepatitis among Swiss drug addicts. Switzerland earmarks $88 to 146 million annually for harm reduction.

IV. U.S. Policy Initiatives and Programs

Bilateral Cooperation. U.S. officials continue to receive excellent cooperation from their Swiss counterparts in legal and law enforcement efforts to counter narcotics trafficking and money laundering. In particular, there have been several successful cooperative operations against money laundering in which the Swiss have seized bank accounts and shared the assets with the USG.

The Road Ahead. We want to build on our solid foundation of law enforcement cooperation in the fight against narcotics trafficking and money laundering. We will encourage the Swiss Government to ratify as soon as possible the 1988 UN Drug Convention and fully implement its provisions.