Financial Crime World

Swiss Sanctions Regime: A Territorial Approach

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The Swiss sanctions regime is based on the principle of territoriality, meaning that sanctions are applicable to facts occurring within and actions taken in Switzerland. Unlike other sanctions regimes, such as those of the EU or UK, Swiss sanctions do not extend to the worldwide conduct of Swiss nationals or residents.

Blocking and Freezing Assets

Most Swiss sanctions regimes require assets owned or controlled by sanctioned individuals or entities to be blocked or frozen. This includes assets held in Swiss banks or other financial institutions.

Key Takeaways:

  • Assets must be blocked or frozen if they are owned or controlled by sanctioned individuals or entities.
  • Assets include those held in Swiss banks or other financial institutions.

Licenses and Exceptions

The Federal Council may grant exceptions to sanctions prohibitions to support humanitarian activities or safeguard Swiss interests. These exceptions may be delegated to the State Secretariat for Economic Affairs (SECO) or another agency.

Key Takeaways:

  • The Federal Council may grant exceptions to sanctions prohibitions.
  • Exceptions may be granted to support humanitarian activities or safeguard Swiss interests.
  • Delegated exceptions may be made by SECO or another agency.

Reporting Requirements

Individuals or institutions holding assets owned or controlled by sanctioned individuals or entities must report these assets to the SECO. The report must include the names of beneficiaries and other relevant details.

Key Takeaways:

  • Individuals or institutions must report assets held by sanctioned individuals or entities.
  • Reports must include beneficiary names and relevant details.
  • Reports are submitted to the SECO.

Enforcement

Criminal enforcement of sanctions violations is carried out by national authorities, while civil enforcement is not applicable under Swiss law. Criminal penalties for sanctions violations can include fines and imprisonment. There are no civil penalties for violating economic sanctions laws in Switzerland.

Key Takeaways:

  • Criminal enforcement is carried out by national authorities.
  • Civil enforcement is not applicable under Swiss law.
  • Criminal penalties may include fines and imprisonment.
  • No civil penalties exist for violating economic sanctions laws.

Appeals Process

There is no appeal process for criminal sanctions violations in Switzerland. For administrative decisions related to sanctions, there is a limited right of appeal.

Key Takeaways:

  • No appeal process exists for criminal sanctions violations.
  • Limited right of appeal applies to administrative decisions related to sanctions.

Statute of Limitations

The statute of limitations for serious economic sanctions violations is 15 years, while for other violations it is seven years.

Key Takeaways:

  • Statute of limitations for serious economic sanctions violations: 15 years.
  • Statute of limitations for other violations: 7 years.

Future Developments

Switzerland is currently discussing the implementation of thematic sanctions regimes similar to those of the EU. The country is also considering measures to freeze Russian funds to finance Ukraine’s reconstruction.

Key Takeaways:

  • Switzerland is discussing thematic sanctions regimes similar to those of the EU.
  • Measures may be implemented to freeze Russian funds for Ukraine’s reconstruction.

Accessing Sanctions Information

The SECO website provides information and guidance on export controls and sanctions in French, German, Italian, and English.

Key Takeaways:

  • The SECO website is a primary source of information on Swiss sanctions.
  • Information and guidance are available in four languages: French, German, Italian, and English.