Financial Crime World

Switzerland’s Crackdown on Financial Crime: A New Era of Legislation

Switzerland, recognized as a global hub for banking and finance, is strengthening its stance against financial crime. In response to international pressure to combat money laundering, tax evasion, and other illicit activities, the Swiss government and financial regulatory body FINMA have introduced a series of new laws and regulations.

Reinforcing Switzerland’s Financial Sector 🇨🇭

  1. Revised Financial Institutions Act (FinSA): Effective since January 1, 2020, FinSA aims to:

    • Strengthen the Swiss financial sector’s regulatory framework
    • Enhance transparency
    • Improve customer protection

    Key Provisions:

    • Client Due Diligence
    • Organization and Risk Management
    • Ongoing Monitoring and Reporting

  2. Swiss Money Laundering Reporting Office (MROS): Improved to streamline information sharing and cooperation between sectors.

Additional Legislative Acts đź”’

  • Automatic Exchange of Information (AEOI) Act: Mandates the automatic sharing of financial account information between tax authorities of different jurisdictions (2018).
  • Anti-Money Laundering Act (AMLA): Comprehensive legislation regulating money laundering, asset forfeiture, and terrorism financing (1997, continuously updated).

A New Approach to Financial Crime 🔓

Switzerland’s dedication to maintaining its reputation as a trusted financial center and complying with international standards has led to these significant regulatory changes. With these new laws in place, the Swiss financial sector is expected to become even more resilient against financial crime, boosting investor confidence and strengthening Switzerland’s position as a reliable financial hub.

Important Provisions

Client Due Diligence 🛡️

FinSA requires financial intermediaries to:

  • Ensure clients are not involved in money laundering, terrorist financing, or other criminal activities.

Organization and Risk Management 🔧

  • Financial firms: Establish effective structures and risk management systems to prevent and manage financial risks.

Ongoing Monitoring and Reporting ⚠️

  • Reporting requirements: Transactions and clients suspected of suspicious activity must be reported to FINMA.

Switzerland’s commitment to these new regulations is a notable step towards further enhancing its financial sector’s integrity and combating financial crimes.