In a first major admission of being an "attractive location" for laundering of assets amassed illegally abroad, Switzerland has said it needs to further strengthen systems for combating money laundering and terrorist financing.

The admission comes at a time when Switzerland has been facing immense pressure from India and many other nations to share details of Swiss bank customers suspected to have used the famed secrecy walls of banking institutions in the European country to hide their illicit funds.

Without disclosing the names of the countries from where the financial crime proceeds could be coming in, a high-level government panel of the Alpine nation said that Switzerland is not immune to the financial crime and the banks are the most exposed financial entities to such risks.

While some Swiss banks have individually settled cases of alleged tax evasion by American citizens and by persons of other countries, this is the first time that Switzerland has admitted to the country being an "attractive" place for foreigners to keep their ill-gotten money.

The 'first national report on money laundering and terrorist financing risks' was discussed by Switzerland's apex decision making body, the Federal Council, in its last meeting held in Berne this Friday.