Financial Crime World

Switzerland Implements Stringent Financial Sanctions Regime

In an effort to comply with international obligations and prevent the proliferation of terrorism, money laundering, and other illicit activities, Switzerland has established a robust financial sanctions regime.

The Embargo Act: A Key Piece of Legislation

The Federal Act on the Implementation of International Sanctions, also known as the Embargo Act, came into effect on January 1, 2003. This act enables Switzerland to implement both UN sanctions and an autonomous sanctions regime based on ordinances issued by the Federal Council.

The Scope of the Sanctions Regime

The sanctions regime in Switzerland is primarily economic in nature but may also include non-economic measures. These can range from:

  • Direct or indirect restrictions on transactions involving goods and services, payment and capital transfers, and the movement of persons
  • Prohibitions
  • Licensing and reporting obligations
  • Restrictions on rights

Maintaining a List of Sanctioned Individuals and Entities

The State Secretariat for Economic Affairs (SECO) maintains a list of sanctioned individuals and entities, which is updated regularly. The full list can be accessed online, along with information on current and lifted sanctions.

Consequences of Non-Compliance

A breach of sanctions can result in severe consequences, including:

  • Imprisonment for up to five years
  • Fines of up to CHF 1 million
  • Businesses and individuals can be held criminally liable for intentional or negligent breaches
  • Refusal to provide information or cooperate with authorities can also lead to penalties

Regulators and Contact Information

The relevant regulators in Switzerland are the supervisory authorities appointed by the Federal Council. Specific questions regarding the Swiss sanctions regime can be addressed to SECO.

Contact Information:

  • State Secretariat for Economic Affairs (SECO)