Switzerland Imposes Financial Sanctions to Combat Terrorism and Maintain International Security

In order to maintain world peace and international security, Switzerland has implemented financial sanctions as required by the United Nations Security Council. The country has taken steps to combat terrorism and terrorist financing through its Embargo Act and anti-money laundering legislation.

Enforcing International Sanctions

According to FINMA, Switzerland’s financial market regulator, the country enforces international sanctions against states, individuals, and legal entities that are deemed to be involved in terrorist activities or financing. These sanctions can have a significant impact on the financial market and may include:

• Economic or trade embargos
• Freezing of assets
• Other measures

Implementing UN Security Council Resolutions

Switzerland has implemented UN Security Council resolutions through ordinances issued by the Federal Council, which is responsible for enforcing international sanctions. The country also takes independent freezing measures to safeguard its own interests.

Combating Terrorist Financing

In addition to implementing UN resolutions, Switzerland is also committed to combating terrorist financing through its anti-money laundering legislation. This includes having procedures in place to freeze the assets of terrorists and terrorist organizations.

Collaboration with the Financial Action Task Force (FATF)

The Financial Action Task Force (FATF) is an international body that develops and promotes measures to combat money laundering, terrorist, and proliferation financing. Switzerland is a member of FATF and works closely with the organization to develop effective anti-money laundering and combating the financing of terrorism (CFT) measures.

Responsibilities for Financial Intermediaries

FINMA calls on all financial intermediaries to take into account FATF statements regarding high-risk and other monitored jurisdictions in their risk management strategies. The regulator also requests recognized self-regulatory organizations to inform their members about these statements.

Accessing FATF Statements

FINMA publishes information on FATF statements, which are available on its website and through the MyFINMA platform. These statements include information on countries that pose a high risk of money laundering or terrorist financing, as well as other monitored jurisdictions.

By implementing financial sanctions, combating terrorist financing, and collaborating with international organizations like FATF, Switzerland is demonstrating its commitment to maintaining world peace and international security.