The Schengen Agreement eliminates all internal border controls among the 25 European states who have entered into it. The implementation of the Schengen Agreement has meant harmonized customs regualtions and passports. Switzerland has issued biometric passports since early 2010.
This page is a really good aggreagtion off all things both Shengen and Swiss. Switzerland's place in the Schengen agreement is interesting because Switzerland is not in the EU and therefore does not use the common currency. That, however, doesn't mean that Switzerland is unwilling to enter into other multilateral agreements with European countries.
More on Schengen:
For those as confused as I was about how to pronounce 'Schengen," this should help. Schengen is a town in Luxembourg (pop. 1500) so think German, not Chinese. It rhymes with swingin' as in "Schengen is a swingin' town." This is a mnemonic device, not necessarily a fact.
Europe: Biometric Visas Begin To Function In The Schengen