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Financial Institutions and Businesses Must Comply with Anti-Money Laundering Requirements
In a bid to combat financial crimes, the government has outlined strict anti-money laundering (AML) requirements for various financial institutions and businesses operating in the country. The regulations aim to prevent the misuse of the financial system by criminal organizations and terrorist networks.
Who is Subject to AML Requirements?
A wide range of financial institutions and businesses are subject to these requirements, including:
- Banks and investment firms
- E-money businesses
- Insurance undertakings
- Exchange offices and payment service providers
- Asset management companies
- Lawyers and law firms that provide tax advice or assist in the planning and execution of financial transactions
- Real estate agents
- Persons trading in goods who make cash payments above CHF 10,000
- Crypto-asset businesses, including:
- Token issuers
- Depositaries
- Exchange service providers
- Token loan companies
- Trading platform operators
- Administrators for crypto-assets
- Transfer service providers
- Operators of trading platforms for non-fungible tokens
- Art dealers who trade artworks worth CHF 10,000 or more
- Safe custody services that hold third-party assets
AML Requirements
These businesses are required to perform a range of duties, including:
- Identifying and verifying the identity of customers and beneficial owners
- Establishing a business profile and supervising business relationships based on risk
- Conducting timely risk-adequate monitoring of transactions and business relationships
- Carrying out simple investigations when circumstances arise that deviate from the business profile
- Conducting special investigations when there is suspicion of money laundering or other financial crimes
Exceptions
There are some exceptions to these requirements, including:
- Small businesses with a low-risk business model may be exempt from certain AML requirements
- Certain transactions, such as those related to foreign exchange and securities trading, may be subject to different regulations
Consequences of Non-Compliance
Failure to comply with AML requirements can result in serious consequences, including fines, penalties, and even criminal prosecution. It is essential for financial institutions and businesses to understand their obligations under these regulations and take steps to ensure compliance.
Conclusion
The government’s anti-money laundering requirements are designed to protect the financial system from abuse by criminal organizations and terrorist networks. Financial institutions and businesses must take these regulations seriously and implement robust AML controls to prevent money laundering and other financial crimes.