> This would free Switzerland from the accusation of hypocrisy, because at the moment it is democratic itself, but profiting a lot from money coming from authoritarian, corrupt regimes and even outright dictatorships.
How is a democracy index put out by an organization legally binding? You are still asking to encode a qualitative judgement into law, which is difficult even in less democratic countries.
> because it would show that democratic values are more important than money.
For most people, democracy is the means to safety and security (and yes, money), not the other way around. Your plan would ironically make more sense in an autocracy where such ideology can be more easily implemented and enforced.