Switzerland’s Anti-Money Laundering Laws: An Ongoing Battle Against Financial Crime

In the heart of Europe, Switzerland’s financial sector continues to grapple with money laundering and terrorist financing. The country’s Anti-Money Laundering Act (AMLA) serves as a key legislative tool in the fight against financial crime.

History of AMLA in Switzerland

• June 1996: The Federal Assembly of Switzerland enacted the AMLA, formally known as the Federal Act on Combating Money Laundering and Terrorist Financing (SR 955.0).
• October 10, 1997: The AMLA commenced.

The AMLA aims to prevent criminals, including members of mafia and terrorist organizations, from accessing Swiss financial institutions.

Requirements for Financial Intermediaries

Financial intermediaries such as banks, asset managers, and investment companies are required to exercise vigilance regarding the source of funds. In cases where beneficial owners are involved in a financial transaction, banks must withhold their names to allow for an investigation before the transfer is carried out.

Evolution of Swiss Anti-Money Laundering Legislation

Initially designed to counter the perceived threat posed by organized crime, the AMLA is an essential piece of legislation amid growing global concerns regarding financial crime, corruption, and illicit activities.

The Need for Additional Legislation

Despite international calls for stricter measures to tackle corruption, the Swiss parliament has declined to extend the Money Laundering Act (MLA) to include advisors, such as lawyers and trustees, who manipulate shell companies or trusts.

Latest Developments and Regulatory Pressure

The recent Pandora Papers leak has fueled debates on the need to fortify the AMLA further. The Swiss government is under pressure to address this gap in regulation to ensure greater transparency and prevent financial institutions from serving as safe havens for ill-gotten gains.

Key Resources

1. Swiss Financial Market Supervisory Authority, Circular 2011/01 “Activité d’intermédiaire financier au sens de la LBA” (French)
2. Isabelle Augsburger-Bucheli, “Blanchiment d’argent - actualités et perspectives suisses et internationales” (Editions L’Harmattan, 2014)
3. Public Eye - le magazine, no. 31, September 2021, pp. 5 and 27 (ISSN 2504-1258)

Continuous Reassessment and Strengthening of Swiss Legislation

As the landscape of financial crime evolves, it is crucial that Switzerland’s legislative measures keep pace. The AMLA has been instrumental in combating money laundering and terrorist financing in the country. However, the latest developments in international efforts against financial crime necessitate continuous reassessment and strengthening of the Swiss legislation.