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2.8 Penalties for Violations of AML Obligations
The Supervisory Provisions Act (SPG) prescribes penalties for failures with regard to reporting requirements, carrying out suspicious transactions before filing a report, carrying out suspicious transactions without ensuring a paper trail, informing third parties of suspicious transaction reports, and not freezing assets in case of a suspicion of terrorist financing.
Penalties for AML Failures
- Intentional failures of AML obligations provided by the SPG constitute administrative infractions.
- Monetary fines and penalties are imposed for AML-related offenses.
2.9 What Other Types of Sanction Can Be Imposed on Individuals and Legal Entities Besides Monetary Fines and Penalties?
The supervisory authorities may impose additional sanctions on individuals and legal entities, including:
Additional Sanctions
- Prohibiting the commencement of new business relationships for a limited period of time.
- Publicly disclosing decisions against a financial institution or business subject to DDOs (including the name of the infringer).
- Temporarily prohibiting the performance of the activity authorized under special legislation.
- Withdrawal of the license granted under special legislation.
- Temporary prohibition of members of the executive body and other natural persons from performing executive functions.
2.10 Are the Penalties Only Administrative/Civil?
No, penalties can also be criminal in nature (e.g., imprisonment).
3.1 Describe the Types of Payments or Money Transmission Activities That Are Subject to Anti-Money Laundering Requirements
The following types of payments or money transmission activities are subject to AML requirements:
Types of Payments Subject to AML Requirements
- Trading in artworks
- Safe custody services
- Renting out premises and containers for the safekeeping of valuables (with some exceptions)
- Operators of trading platforms for non-fungible tokens
- Token service providers (e.g., exchange service providers, transfer service providers)
3.2 Describe the Types of Payments or Money Transmission Activities That Are Subject to Anti-Money Laundering Requirements
The following types of payments or money transmission activities are subject to AML requirements:
Types of Transactions Subject to AML Requirements
- Cash transactions exceeding CHF 10,000
- Transactions related to the purchase and sale of precious metals (e.g., gold, silver)
- Transactions related to the purchase and sale of precious stones (e.g., diamonds)
3.3 What Are the Key Obligations for Persons Subject to Anti-Money Laundering Requirements?
The key obligations for persons subject to AML requirements include:
Key Obligations for Persons Subject to AML Requirements
- Identifying and verifying the identity of contracting parties
- Identifying and verifying the identity of beneficial owners
- Establishing a business profile
- Supervising business relationships at a level commensurate with risk