Financial Crime World

Switzerland’s Crackdown on Financial Crimes: An Overview of Anti-Money Laundering Laws

Switzerland, renowned for its strict banking privacy laws, has faced increased scrutiny in recent years due to concerns over money laundering and other financial crimes. In response, the Swiss government has strengthened its anti-money laundering (AML) regulations.

The Role of FINMA

The Swiss Financial Market Supervisory Authority (FINMA) is responsible for enforcing AML regulations in the country. In 2020, Swiss financial institutions processed approximately 365 million transactions worth CHF 4.5 trillion ($4.8 trillion). To maintain the integrity of this vast financial system, stringent AML measures are essential.

Changes to Swiss AML Laws

Swiss AML laws have undergone several modifications in response to international and regional pressures, including:

  1. Expanded Definition of PEPs: Swiss legislation now includes individuals holding high-ranking political positions in their countries of origin, their family members, and close associates as Politically Exposed Persons (PEPs).

  2. Enhanced Client Due Diligence (CDD): Swiss financial institutions must now perform comprehensive CDD checks on new and existing clients, utilizing databases and third-party information sources.

  3. Increased Penalties: FINMA can impose fines and sanctions on institutions that breach AML regulations.

  4. Risk-Based Approach: Financial institutions are expected to evaluate and mitigate money laundering risks through a risk-based approach.

  5. Cross-Border Cooperation: Swiss authorities collaborate with their counterparts in other countries to combat financial crimes.

Expert Insights

Bruno Ledrappier, Partner at Charles Russell Speechlys in Zurich, with expertise in dispute resolution, including tax disputes and investigations, can be reached at bruno.ledrappier@crsblaw.com for more information on tax disputes and investigations. Visit www.charlesrussellspeechlys.com/en/insights/expert-insights/litigation–dispute-resolution/2021/anti-money-laundering-in-switzerland—quick-overview for further details.

The content provided is for informational purposes only and does not constitute legal or other professional advice.

Swiss AML Regulations: A Necessity for Businesses

Switzerland’s commitment to combating financial crimes underscores the importance of robust AML measures for businesses operating within its borders. Financial institutions are advised to stay informed about regulatory changes and adapt their practices accordingly.

About Charles Russell Speechlys

Charles Russell Speechlys is an international law firm offering a comprehensive range of services to businesses and individuals, with a focus on private wealth, tax, and dispute resolution. The firm’s litigation and dispute resolution practice is market-leading, and they have offices in Zurich, Geneva, and New York.

Contact Information

Charles Russell Speechlys Ltd. Bahnhofstrasse 44 8021 Zurich, Switzerland T: +41 44 215 52 52 F: +41 44 215 52 55 www.charlesrussellspeechlys.com

Bruno Ledrappier can be reached at bruno.ledrappier@crsblaw.com.