Principle 2: knowing the origin of funds and goods

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The second principle consists in knowing the origin of funds, for wealth management and financing, and the origin of goods, for commodity trading. This knowledge forms the core of compliance, as described in Part H. In Africa it takes on particular importance, owing to the weight of natural resources in the economies, the frequency of links between private fortunes and public office, and the existence of conflict zones and informal mining operations.

For funds, the clarification must cover the activity that generated the wealth, the contracts, public procurement awards and concessions on which it rests, the flows that built it up and the links with those in power. Summary declarations are not sufficient: supporting documents — company accounts, contracts, title deeds, tax returns where they exist — must be obtained and analysed.

For goods, the clarification must cover the place of extraction or production, the conditions of exploitation, the intermediaries and compliance with the due diligence obligations relating to conflict minerals and child labour described in Part H. Gold, cobalt, cocoa and timber call for particular vigilance. Certificates of origin, inspections and traceability programmes are the instruments of this verification.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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