Switzerland Enhances Anti-Money Laundering Laws to Meet FATF Recommendations
Strengthening Anti-Money Laundering Toolkit
The Swiss Federal Council has brought into force revised anti-money laundering laws and regulations, effective from January 1, 2023. This move aims at strengthening Switzerland’s toolkit to combat money laundering and terrorist financing in line with key recommendations from the Financial Action Task Force (FATF) mutual evaluation report on the country.
Revision of Anti-Money Laundering Act (AMLA)
The revision of the AMLA was adopted by Parliament in March 2021. It introduces measures for financial intermediaries in areas such as:
- Beneficial Ownership: Enhancing transparency and accountability in beneficial ownership information.
- Client Data Updates: Requiring regular updates of client data to prevent fraudulent activities.
- Suspicious Activity Reports (SARs): Strengthening regulations on SARs related to money laundering.
Implementing Provisions
The Federal Council has issued implementing provisions in various ordinances, including:
- Reporting Requirements: Clarifying reporting requirements for financial intermediaries.
- Precious Metal Scrap Control Mechanism: Introducing a control mechanism for the purchase of precious metal scrap to prevent money laundering.
- Central Office for Precious Metals Control: Enhancing the mandate of the Central Office as a money laundering oversight authority.
Exemptions and Waivers
The revised laws provide exemptions and waivers, including:
- Exemption from Commercial Registry Registration: Smaller associations will be exempt from registering with the commercial registry under certain conditions.
- Waiver of Entry in Commercial Registry for Travelling Board Members: Protecting the identities of travelling board members by waiving entry in the commercial registry.
Duties and Regulations
The revised laws also change duties in the event of suspicion of money laundering. Instead of being regulated by supervisory authorities’ ordinances, these duties will be governed by Federal Council directives.
Ensuring Compliance with International Standards
The Swiss government’s move is aimed at addressing concerns raised by the FATF and ensuring that Switzerland remains compliant with international anti-money laundering standards. The revised laws are expected to enhance transparency and accountability in financial transactions, contributing to a safer and more secure financial environment in the country.