(status: 29 September 2011)
These FAQs address issues concerning financial intermediaries in relation to anti-money laundering legislation. They cover aspects of how financial intermediaries are subject to such legislation as well as due diligence requirements under the Anti-Money Laundering Act (AMLA).
A. ANTI-MONEY LAUNDERING ACT (AMLA, SR 955.0)
1. What is the purpose of Article 7a AMLA (assets with low value) and how is it specifically applied?
Article 7a AMLA exempts financial intermediaries from due diligence requirements under Articles 3-7 AMLA where the assets involved are low in value and where there are no suspicions or indications of possible money laundering or terrorist financing. In addition, according to the Federal Council Dispatch on the implementation of the revised recommendations of the Financial Action Task Force on Money Laundering (FATF) dated 15 June 2007 relating to Article 7a AMLA, the business relationship involved must be an ongoing relationship. The supervisory authority, i.e. FINMA, must specify the implementation requirement. The terms of Article 7a AMLA were set down in Article 11 of the new Anti-Money Laundering Ordinance of the FINMA (GwV-FINMA; SR 955.033.0) that entered into force on 1 January 2011.
Please refer to page 40 ff. of the explanatory report of 8 June 2010 and to page 19 ff. of the consultation report of 8 December 2010 for further details.
B. ANTI-MONEY LAUNDERING ORDINANCE OF THE FINMA (GwV-FINMA)
2. Are all financial intermediaries to apply the new criterion prescribed in Article 12, para. 2, let. h GwV-FINMA to business relationships involving higher risks?
The new criterion defined in Article 12, para. 2, let. h GwV-FINMA (“structure complexity, particularly with regard to the use of domiciliary companies“) is to be applied in the same manner as the other rules specified in Article 12, para. 2, GwV-FINMA. Upon analysing the structure and the risks involved in their business relationships, all financial intermediaries must determine whether this new criterion is relevant for their business activities. If this is the case, financial intermediaries are to apply the new rule under Article 66, para. 5 GwV-FINMA starting from 1 January 2012, i.e. the new rule is to be specified in concrete terms in the financial intermediaries’ internal guidelines and be respected when categorising new clients. In any case, financial intermediaries must document the results of their analysis and subject its traceability to an audit control.
C. ORDINANCE ON THE PROFESSIONAL PRACTICE OF FINANCIAL INTERMEDIATION (VBF)
3. When is the VBF applicable and what impact will it have when it enters into force?
The Ordinance on the Professional Practice of Financial Intermediation (VBF; SR 955.071) entered into force on 1 January 2010 (Federal Department of Finance press release). FINMA is authorised to issue implementing regulations for this Ordinance. To this end, FINMA issued FINMA-Circular 2011/1 “Financial Intermediation under AMLA” . A particular element that should be noted is that, regardless of the extent or amounts involved, "money transmitting" activities are always subject to the Anti-Money Laundering Act.
D. FURTHER INFORMATION
4. Whom can I contact if I have further questions?
aml@finma.ch oder Tel. 031 327 91 00