Financial Crime World

Switzerland Takes Stricter Stance on Due Diligence in Financial Transactions

Switzerland’s financial market legislation has undergone significant changes to combat money laundering and terrorist financing. The country’s anti-money laundering framework is now governed by a single federal act, one Federal Council ordinance, and one FINMA ordinance.

Anti-Money Laundering Act: Ensuring Due Diligence in Financial Transactions

At the heart of these regulations lies the Anti-Money Laundering Act, which applies to financial intermediaries. This act ensures that they exercise due diligence in conducting financial transactions, including measures to prevent money laundering and terrorist financing, as well as reporting duties for traders.

Key Obligations

  • Preventing money laundering and terrorist financing
  • Reporting duties for traders
  • Ensuring transparency in financial transactions

Anti-Money Laundering Ordinance: Specific Requirements for Financial Intermediation

The Anti-Money Laundering Ordinance sets out specific requirements for the professional practice of financial intermediation, including due diligence obligations that must be fulfilled by traders. These regulations are designed to prevent the misuse of financial systems and ensure transparency in financial transactions.

Key Obligations

  • Due diligence obligations
  • Preventing the misuse of financial systems
  • Ensuring transparency in financial transactions

FINMA Anti-Money Laundering Ordinance: Guidance for Financial Intermediaries

The FINMA Anti-Money Laundering Ordinance provides guidance on how financial intermediaries can implement their anti-money laundering obligations. This includes measures to:

  • Identify and report suspicious transactions
  • Keep accurate records
  • Report suspicious activities to the relevant authorities

Key Obligations

  • Identifying and reporting suspicious transactions
  • Keeping accurate records
  • Reporting suspicious activities

Conclusion

These changes reflect Switzerland’s commitment to maintaining a robust anti-money laundering framework that protects its financial system from illicit activities. By requiring due diligence in financial transactions, the country is sending a clear message that it will not tolerate money laundering or terrorist financing.