Countries don’t typically sue Switzerland for holding stolen money because of the complexities of international law, diplomacy, and the structure of Swiss banking regulations. However, many nations and organizations work with Switzerland through legal and diplomatic channels to recover stolen funds. Here are the main reasons lawsuits are not a common approach:

1. Bank Secrecy Laws (Now Relaxed)
   For decades, Switzerland was known for its strict bank secrecy laws, which made it difficult to track illicit funds. Although these laws have been relaxed in recent years due to global pressure, the process of identifying stolen money is still highly complex.
2. Lack of Direct Responsibility
   Switzerland itself doesn’t steal the money; it is deposited by individuals or entities. Holding the country legally accountable is difficult unless evidence shows Swiss institutions knowingly facilitated illegal activity.
3. International Cooperation Frameworks
   Instead of lawsuits, countries use treaties and agreements for asset recovery. Switzerland collaborates with other nations under frameworks like the United Nations Convention Against Corruption (UNCAC) and bilateral treaties.
4. Diplomatic Concerns
   Suing a sovereign nation can strain international relations. Countries often prioritize cooperation over confrontation to ensure smooth financial and political interactions.
5. Legal Challenges
   Proving a case in international court would require extensive evidence that stolen funds were knowingly harbored. Legal systems differ across countries, and jurisdictional issues complicate such cases.
6. Ongoing Reforms
   Switzerland has reformed its banking system to improve transparency. Since 2018, it has participated in the Automatic Exchange of Information (AEOI), sharing financial information with many countries to combat tax evasion and money laundering.

In practice, countries pursue stolen funds through legal mutual assistance agreements, where Switzerland often freezes and returns illicitly acquired assets after due process. For example, in high-profile cases involving dictators like Ferdinand Marcos of the Philippines and Sani Abacha of Nigeria, Switzerland returned billions of dollars to the affected countries.