The risk profile of the trade

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The commodity trade is exposed to corruption to a degree that few other industries match. Its counterparties are often state-owned companies and government agencies in countries where corruption is widespread. The value of the transactions is high and the margins can be large in moments of scarcity. The decisions of a single official, whether to award a cargo, to grant a licence or to approve a prepayment, can be worth millions. The trade relies on intermediaries, agents and consultants who know the local markets and officials and whose payments are difficult to monitor. The convictions of Glencore, Gunvor and Trafigura, which are described in this chapter, show that these risks have materialised repeatedly in the Swiss commodity trade.

The Federal Council's reports on the commodity sector have acknowledged these risks and called for the strengthening of the sector's integrity.¹ The legal instruments available to Swiss authorities are the criminal offence of bribery of foreign public officials, the criminal liability of companies, the anti-money-laundering rules and the obligations of transparency and due diligence introduced in recent years. This chapter examines each of them.

Notes

SIF, "Rohstoffhandel": the Federal Council report of November 2018 contained 16 recommendations aimed at strengthening the attractiveness, innovation capacity, integrity and responsible practice of the Swiss commodity hub. ↩

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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The risk profile of the trade

Notes

Setting up or expanding in Switzerland?