Switzerland’s Stricter AML Rules: What Institutions Need to Know
Zurich, Switzerland - In an effort to combat money laundering and terrorist financing, the Swiss government has implemented stricter anti-money laundering (AML) regulations for financial intermediaries.
Who is Subject to AML Rules?
According to Article 2 of the Anti-Money Laundering Act (AMLA), all financial intermediaries are subject to AML rules. This includes:
- Banks
- Portfolio managers and trustees
- Fund management companies
- Insurance institutions
- Securities firms
- Casinos
- Individuals who professionally accept or hold assets belonging to others
Additionally, traders who receive cash payments above a certain threshold are also required to comply with AML regulations.
Payment Services and Money Transmitters
Payment systems that require a license from the Swiss Financial Market Supervisory Authority (FINMA) are subject to AML regulations. This includes:
- Entities that clear and settle payment obligations based on uniform rules and procedures
- Services in the field of payment traffic, such as executing payment orders or issuing means of payment
Digital Assets
The concept of “assets” under AMLA is broad and covers all assets with economic value, including digital assets. Financial intermediaries that hold or assist in the transfer of crypto-currencies are subject to the same obligations as if they were handling fiat currency.
AML Compliance Requirements
Financial intermediaries subject to AML regulations have several material obligations, including:
- Verifying the identity of customers and beneficial owners
- Identifying the object and purpose of business relationships
- Keeping accurate records of verifications and updates
- Reporting suspicions of money laundering to the Money Laundering Reporting Office Switzerland (MROS)
Additionally, financial intermediaries are required to have organizational measures in place, including:
- Training
- Personnel control
Conclusion
The Swiss government’s efforts to strengthen AML regulations demonstrate its commitment to combating money laundering and terrorist financing. Financial institutions must ensure they comply with these stricter regulations to avoid penalties and reputational damage.
By understanding the scope of AML regulations and implementing effective compliance measures, financial intermediaries can play a critical role in preventing illicit activities and protecting the integrity of the financial system.