Scott Miller hits Switzerland at a sore spot.
American Ambassador Scott Miller has repeatedly criticized Switzerland for implementing sanctions against Russia.
By his standards, Scott Miller, the US ambassador in Bern, was diplomatic. “We hope that Switzerland will help close the loophole that allows subsidiaries to circumvent sanctions,” he was quoted as saying in the TX Group newspapers on Thursday. It is important to deprive Russia of the financial resources it needs to continue its brutal war. “None of our companies should be complicit.” He then said that he was “disappointed” with Switzerland.
Miller commented on the Federal Council’s decision not to adopt a provision of the EU sanctions against Russia. The European Union wants to ensure that companies do not undermine the sanctions measures through subsidiaries in third countries. The Federal Council argues that Switzerland already has the means to pursue circumvention through subsidiaries.
American delegation visits Bern
Miller’s statement reminds us that the discussion about the implementation of sanctions and Russian funds was not ongoing. In recent months the topic has become quiet. So quiet that last week hardly anyone paid any attention to the visit of a delegation from the US Department of State and Finance. This met in Bern, among others, with representatives of the State Secretariats for Economic Affairs and International Financial Affairs.
The delegation inquired about Swiss efforts to strengthen enforcement of money laundering regulations, the American embassy in Bern said afterwards. The aim is to create a register of beneficial owners. Washington officials also stressed the importance of Switzerland, as a global financial center, closing loopholes that could be exploited for illegal activities.
Observers have long been warning that Switzerland lacks foresight. The retired diplomat Paul Widmer – anything but a leftist – commented critically on Bern’s behavior in the NZZ last year. “Parliament wasn’t exactly at its best when it exempted lawyers and trustees from the money laundering law – and now we are under international pressure because of dubious money transfers.” Widmer saw an even greater reputational risk in the raw materials business. If companies were founded specifically to enable circumvention transactions, something would go wrong, he said. This must be stopped as quickly as possible.
Switzerland is having trouble dealing with foreign pressure
The fact that Miller’s comments met with a great response also has to do with Swiss peculiarities. When it comes to foreign policy, Switzerland fluctuates between overconfidence and an inferiority complex. She can’t handle foreign pressure well. This is regularly seen in European politics. When EU representatives make announcements, some in Switzerland reflexively turn in the red. This was most recently observed when EU Commissioner Maros Sefcovic publicly rejected a unilateral Swiss protection clause on immigration.
Miller was also unusually harsh on Switzerland last year. The ban on passing on Swiss-made weapons to Ukraine helps Russia, he said in an interview with the NZZ. And urged the federal government to take part in the task force on Russian oligarchs from the G-7 states and Australia. He made it clear that Switzerland could block additional Russian assets worth billions. “You cannot be a leading international financial center without being exposed to pressure from all sides.”
Miller was appointed by President Joe Biden in 2021. He had not previously worked as a diplomat, but had worked, among other things, for the major bank UBS in the USA. Miller has been at the ambassadorial post in Switzerland for almost three years. If Kamala Harris is elected in November, he could stay in Bern for a while – at least according to the usual cycle in diplomacy.
