Financial Crime World

Switzerland Boosts Anti-Terrorism Financing Laws to Combat Money Laundering and Terrorism

Strengthening Fight Against Financial Crimes

As of January 1, 2023, Switzerland has introduced revised anti-money laundering laws aimed at combating financial crimes and bringing its regulations in line with international recommendations from the Financial Action Task Force (FATF). The new measures are part of Switzerland’s ongoing efforts to maintain its reputation as a stable and secure financial hub.

Key Changes

  • Revised Anti-Money Laundering Act (AMLA) and Ordinance (AMLO): Adopted by Parliament in March 2021, the revised regulations target financial intermediaries, requiring them to:
    • Improve reporting of suspicious activities
    • Maintain accurate records on beneficial ownership
  • Increased Transparency for High-Risk Associations: Associations deemed at high risk of terrorist financing will need to increase transparency and maintain accurate records.
  • Enhanced Supervision and Controls for Precious Metals: New controls will be introduced for the purchase of precious metal scrap, and the Central Office for Precious Metals Control will assume the role of a money laundering oversight authority.
  • Simplified Registration for Smaller Associations: Smaller associations may now be exempt from registering with the commercial register.
  • Waived Entry for Travelling Board Members: Travelling board members can have their entry waived under certain conditions to protect their privacy.

Shift in Duties and Responsibilities

  • Supervisory Authorities’ New Roles: The duties of supervisory authorities in the event of suspected money laundering have been shifted from ordinances to regulations issued by the Federal Council.
  • Central Office for Precious Metals Control’s New Role: The Central Office will assume the role of a money laundering oversight authority, monitoring and controlling precious metal transactions.

Switzerland’s Commitment to Combating Financial Crimes

Switzerland is committed to maintaining its reputation as a stable and secure financial hub while ensuring that its financial sector remains resilient to threats posed by money laundering and terrorist financing. The revised laws are part of the country’s ongoing efforts to combat financial crimes and meet international standards set by the FATF.