The Swiss authorities said Thursday that the number of money-laundering investigations rose sharply last year, and one of the reasons is that financial intermediaries are becoming more willing to submit to inspection.

The Money Laundering Control Authority (MLCA) -- whose investigations target asset managers, trustees and lawyers among others -- said in a report that it had investigated 452 financial institutions in 2004, up from 259 in the previous year.

The MLCA said that it had been able to step up its work because the new Money Laundering Act, which came into force in 1998, was now fully operational.

This law requires all financial institutions -- and not just banks -- to report suspicious transactions.

"The MLCA's practice of taking more stringent action against illegally active financial intermediaries is also sending a clear signal," the organization said in a statement.

"For the first time the finance ministry issued a fine of 40,000 Swiss francs (33,400 US dollars) based on a complaint by the MLCA,"it added.

Switzerland has been criticized in the past for not doing enough to fight financial fraud and money laundering.

The Swiss government announced in January that it wanted to reinforce legislation to bring it into line with international standards. This would include extending the list of crimes connected with money laundering.

Source: Xinhua