Title: Swiss Federal Council Enforces Revised Anti-Money Laundering Act

The Swiss Federal Council has implemented the revised Anti-Money Laundering Act (AMLA) and its corresponding ordinances, reinforcing Switzerland’s commitment to combating money laundering and terrorism financing. Here’s a breakdown of the key changes:

Expanded Scope of Due Diligence Obligations & Enforcement Powers

Relevant financial institutions, including banks and financial intermediaries, will be subject to expanded due diligence obligations and enforcement powers under the new AMLA.

• Due Diligence: More stringent customer due diligence measures will be required, such as enhanced identification procedures and ongoing monitoring.
• Enforcement: Firmer penalties for non-compliance, including fines and criminal sanctions, will be imposed.

Aligning with International Standards & FATF Recommendations

The new AMLA is in line with international standards and recommendations from the Financial Action Task Force (FATF). These updates aim to enhance Swiss financial regulations to ensure they are robust enough to combat money laundering and terrorism financing effectively.

Applying to Higher-Risk Professions

The new AMLA will apply to various professions identified as being at risk for money laundering activities, including banks, financial intermediaries, and other high-risk sectors.

Changes Under the New AMLA

Key changes under the new AMLA include:

• More Stringent Customer Due Diligence Measures: Financial institutions will need to apply more thorough identification procedures, risk assessments, and ongoing transaction monitoring.
• Increased Reporting Requirements: Financial institutions will have to report more types of transactions and suspicious activities to the Swiss Financial Market Supervisory Authority (FINMA).
• Harsher Penalties for Non-Compliance: Non-compliant financial institutions will face stricter penalties, including both fines and criminal sanctions.

Maintaining Switzerland’s Reputation as a Global Financial Hub

Switzerland aims to preserve and enhance its reputation as a global leader in financial regulation and compliance by implementing these new measures. By complying with international standards and FATF recommendations, the Swiss financial sector can continue to attract international investors and businesses while maintaining the highest levels of integrity and transparency.