Financial Crime World

Switzerland’s AML Rules: A Guide to Compliance

In an effort to combat money laundering and terrorist financing, Switzerland has implemented the Anti-Money Laundering Act (AMLA), which applies to various types of institutions and individuals. This comprehensive guide will help you navigate the complex world of AML compliance in Switzerland.

Which Institutions are Subject to AML Rules?

The AMLA applies to all financial intermediaries, including:

  • Banks
  • Portfolio managers
  • Trustees
  • Fund management companies
  • Insurance institutions
  • Securities firms
  • Casinos

Additionally, individuals and entities that provide services related to payment transactions or issue/ manage means of payment are also subject to the regulations.

Payment Services and Money Transmitters

Payment systems and services in the field of payment traffic are subject to AML rules if they require a license from the Swiss Financial Market Supervisory Authority (FINMA). This includes:

  • Executing payment orders
  • Supporting virtual currency transfers
  • Issuing/managing means of payment
  • Transmitting funds or securities

Digital Assets

The concept of “assets” under the AMLA is broad and includes digital assets such as cryptocurrencies. As a result, financial intermediaries that hold digital assets for others or assist in their transfer are subject to the same obligations as if they were holding fiat currency.

AML Compliance Requirements

Financial institutions subject to anti-money laundering regulations have several material obligations:

  • Verify the identity of customers based on documents of evidentiary value
  • Identify and verify the beneficial owner
  • Renew verification when doubts arise about customer or beneficial owner identity
  • Identify the object and purpose of business relationships
  • Draw up and keep relevant documents to establish verifications
  • Periodically check and update documents as necessary

Additionally, financial institutions must:

  • Report well-founded suspicions of money laundering to the Money Laundering Reporting Office Switzerland (MROS)
  • Comply with organisational obligations such as training and personnel control

Conclusion

Switzerland’s AML rules are designed to prevent money laundering and terrorist financing. By understanding which institutions are subject to these regulations, what specific compliance requirements apply, and how digital assets fit into the picture, financial intermediaries can ensure they are meeting their obligations and helping to keep Switzerland’s financial system safe and secure.

Note: This article is a rewritten version of the original text in a media-style format. It is not an official publication or statement from any government agency or regulatory body.