Anti-Money Laundering Act (Switzerland)

The Anti-Money Laundering Act (AMLA) (German: Geldwäschereigesetz, GwG; French: Loi sur le blanchiment d'argent, LBA; Italian: Legge sul riciclaggio di denaro, LRD) is a Swiss federal law designed to combat money laundering and terrorist financing. The AMLA aims to protect the integrity and reputation of the Swiss financial center by preventing the proceeds of criminal activity from entering the legal financial system.

The law establishes a framework of due diligence obligations for financial intermediaries, including banks, securities dealers, insurance companies, asset managers, and other non-bank financial institutions. These obligations include identifying and verifying the identity of their clients, establishing the beneficial ownership of assets, reporting suspicious activity, and maintaining adequate records.

Key aspects of the AMLA include:

• Due Diligence Obligations: Financial intermediaries must establish the identity of their clients and, in some cases, the beneficial owners of the assets. They must also clarify the economic background of transactions and relationships.
• Reporting Obligations: If a financial intermediary has reasonable grounds to suspect that assets are derived from a crime, they are obliged to report the suspicion to the Money Laundering Reporting Office Switzerland (MROS).
• Organization and Training: Financial intermediaries are required to establish internal procedures and controls to prevent money laundering and terrorist financing. This includes providing adequate training to their employees.
• Supervisory Authorities: The AMLA is supervised by various authorities, including the Swiss Financial Market Supervisory Authority (FINMA) for supervised financial intermediaries and self-regulatory organizations (SROs) for certain other categories of intermediaries. FINMA oversees banks, insurance companies, and securities dealers.
• Criminal Penalties: The AMLA provides for criminal penalties for violations of its provisions, including fines and imprisonment.
• Regular Revisions: The AMLA is subject to periodic revisions to adapt to evolving international standards and emerging threats related to money laundering and terrorist financing.
• Self-Regulatory Organizations (SROs): Certain financial intermediaries, such as asset managers and independent asset managers, may be supervised by self-regulatory organizations recognized by FINMA. These SROs monitor compliance with the AMLA.

The AMLA is a key component of Switzerland's broader efforts to combat financial crime and comply with international standards set by organizations such as the Financial Action Task Force (FATF). It is regularly updated and amended to address emerging risks and enhance its effectiveness.