Financial Crime World

Title: Switzerland Tightens Grip on Financial Crime with New Legislation

Overview of Latest Financial Crime Regulations in Switzerland

The Swiss financial sector, known for its confidentiality and neutrality, has faced scrutiny over its role in money laundering and other financial crimes. In response, the Swiss government passed new legislation to strengthen its legal framework against financial crimes.

New Regulations: FinSA and Revised AMLO

  • Financial Services Act (FinSA): Introduces a licensing system for financial intermediaries, imposing duties of care, confidentiality, and organizational requirements.
  • Anti-Money Laundering Ordinance (AMLO): Expands the definition of money laundering, introduces new due diligence requirements, and heightens penalties.

These regulations, which came into force on January 1, 2020, represent a significant step forward in enhancing Switzerland’s financial regulatory landscape and combating financial crimes more effectively.

Collaboration between FINMA and MROS

  • A new partnership between the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss Financial Crime Control Unit (MROS)
  • Strengthens the supervisory framework, ensuring financial intermediaries are held accountable for enforcing anti-money laundering requirements and cooperating with authorities in investigations.

Institutions’ Adaptation to New Legislation

  • More than 400 license applications were filed in the first year of implementation

Key Provisions of the New Regulations

FinSA

  • Licensing system for financial intermediaries
  • Duties of care
  • Confidentiality requirements
  • Organizational requirements

AMLO

  • Expanded definition of money laundering
  • New due diligence requirements
  • Heightened penalties for violating anti-money laundering laws

Conclusion

  1. Switzerland’s commitment to maintaining the integrity of its financial system
  2. Balanced approach to intermediaries’ regulatory requirements and anti-money laundering framework
  3. Global leader in addressing financial crimes

By enforcing stricter regulations and fostering collaborations between regulatory bodies, Switzerland positions itself as a responsible and accountable financial hub.