Swiss AML-KYC Regulations
Anti-Money Laundering (AML) regulations in Switzerland are designed to prevent money laundering and the financing of terrorism. These regulations are in place to ensure that financial institutions, including banks, insurance companies, and other financial intermediaries, comply with laws and regulations that aim to prevent money laundering and the financing of terrorism.
In Switzerland, AML regulations are governed by the Federal Act on Combating Money Laundering and Terrorist Financing in the Financial Sector (AMLA) and its implementing ordinances. The AMLA requires financial institutions to implement internal regulations and controls to prevent money laundering and the financing of terrorism, as well as to conduct customer due diligence and ongoing monitoring of transactions.
One of the key requirements of the AMLA is that financial institutions must implement customer due diligence measures. This includes identifying and verifying the identity of customers, as well as assessing the potential money laundering and terrorist financing risks associated with the customer and the transactions. Financial institutions are also required to conduct ongoing monitoring of transactions, including identifying and reporting suspicious transactions to the Swiss Financial Intelligence Unit (FIU).
In addition to the AMLA, Switzerland is also a member of the Financial Action Task Force (FATF), an international organisation that sets standards for AML and counter-terrorist financing (CTF) regulations. Switzerland has implemented the FATF’s recommendations and is subject to regular reviews by the organisation.
The Swiss Financial Market Supervisory Authority (FINMA) is responsible for enforcing AML regulations in Switzerland. FINMA has the power to impose fines and sanctions on financial institutions that fail to comply with AML regulations, and can also revoke licenses of non-compliant institutions.
In summary, Switzerland has robust AML regulations in place that are designed to prevent money laundering and the financing of terrorism. These regulations include customer due diligence measures, ongoing transaction monitoring, and reporting of suspicious transactions. Financial institutions in Switzerland are also subject to regular review by the Financial Action Task Force and enforcement by the Swiss Financial Market Supervisory Authority.
Sources:
- Federal Act on Combating Money Laundering and Terrorist Financing in the Financial Sector (AMLA). (https://www.admin.ch/opc/en/classified-compilation/19920149/index.html)
- Financial Action Task Force (FATF). (https://www.fatf-gafi.org/)
- Swiss Financial Market Supervisory Authority (FINMA). (https://www.finma.ch/en/)