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Swiss Money Laundering Ordinance

 

 

Ordinance of the Federal Banking Commission

 in the matter of Fighting against Money Laundering (December 18, 2002)

 -- English Translation of the Content and Articles 5, 6, 8, 21, 29 and some parts of annex

 

Chapter 1                   General Provisions

              Article 1               Definitions

              Article 2               Field of Application

              Article 3               Branches and Group Companies Overseas

 

Chapter 2                   Principles

              Article 4               Prohibition of Acceptance of Valuable Properties proving the Corruption and Other Crimes

 

              Article 5               Prohibition of Business Relationship with Criminal or Terrorist Organizations

 

A financial intermediary must not maintain any business relationship with entities or persons that, it knows or should presume, constitute a terrorist organization or any other criminal organization, are members of such organization, or are supporting or financing them.

 

              Article 6               Relationship with Corresponding Banks

 

(1) The provisions of this ordinance apply equally to the relationship with the corresponding banks

(2) [Not Translated]

 

Chapter 3                   Organizational Measures

              Article 7               Business Relationship Accompanied by Growing Risks

 

              Article 8               Transactions that Show Growing Risks

 

(1) A financial intermediary shall fix the criteria for detection of transaction showing legal and reputational risks.

(2), (3) [Not Translated]

 

              Article 9               Global Management of Legal Risks and Reputational Risks

              Article 10             Internal Directives in the matter of Fighting against Money Laundering

              Article 11             Formation of Personnel

              Article 12             Transaction Supervising System

              Article 13             Internal Service for Fighting against Money Laundering

 

Chapter 4                   Obligation of Ordinary Diligence

              Article 14             Verification of the Identity of the Contracting Party and Identification of the Owner of Economic Right

              Article 15             Information of the Requesting Party at the time of Transfer

              Article 16             Business Dealing of Bank Bills

 

Chapter 5        Obligation of Enhanced Diligence

              Article 17             Additional Clarification in case of Growing Risks

              Article 18             Means of Clarification

              Article 19             Delegation of the Additional Clarifications to Third Parties

              Article 20             Time of Additional Clarifications

 

              Article 21             Permission of Business Relationship accompanied by Growing Risks

 

Permission of business relationship accompanied by growing risks needs approval of the superior person or organ.

 

              Article 22             Responsibility of the Direction to One’s Higher Level

 

Chapter 6        Duty of Documentation

              Article 23             Availability of Information

 

Chapter 7        Conduct in the presence of Indications of Money Laundering or of connections with Terrorist Organizations

              Article 24             Communication at the time of establishing the Business Relationship

              Article 25             Connections with Terrorist Organization

              Article 26             Conduct in the absence of Decisions of Authorities

              Article 27             Doubts on the Quality of the Business Relationship and the Right of Communication

              Article 28             Rupture of the Doubtful Business Relationship

 

              Article 29             Pursuit of the Doubtful Business Relationship

 

A financial intermediary who decides to pursue a doubtful business relationship is obliged to maintain such relationship under strict supervision and to examine such relationship in the light of indications of money laundering (annex).

 

              Article 30             Information for the Banking Commission

 

Chapter 8        Revision

              Article 31

 

Chapter 9        Final Provisions

              Article 32             Transitional Provisions

              Article 33             Going into Effect

 

 

[Annex]

 

Indications of Money Laundering

 

I.                   Importance of Indications

 

II.                General Indications

[……]

Transactions show particular risks of money laundering:

A3

              when their construction indicates an unjust purpose, when their economic purpose is not recognizable, or rather when they seem absurd from the economic point of view;

A4

              when the valuable properties are withdrawn right after it is brought into the account (passage account), as far as the client’s conduct does not make such immediate withdrawal acceptable.

A5-A8bis [not translated]

[……]

 

III.             Particular Indications

1.      Cash Operation

2.      Account or Deposit Operation

3.      Fiduciary Operation

4.      Others

 

IV.              Qualified Indications

 

*This is just an unofficial translation of a part of the law.  For an original, complete text, visit the government’s site.

 

àBooks on Switzerland [Law – Company, Finance, etc.]

[Banking]

 

English Translations of Swiss Banking Laws

  Swiss National Bank Regulation  Swiss Banking Law  Swiss Money Laundering Ordinance

English Translations of Luxembourg Financial Laws

  Trust and Fiduciary Contracts Law  Amended Collective Investment Organization Law  Investment Services Law  Collective Investment Organization Law

 

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