Compliance Guidelines:

Compliance Guidelines in Switzerland

Swiss Financial Market Supervisory Authority (FINMA)

The Swiss Financial Market Supervisory Authority (FINMA) oversees and regulates Switzerland’s financial sector by setting rules, monitoring compliance and  imposing penalties to maintain a stable and trustworthy financial system.

The Federal Act on Combating Money Laundering and Terrorist Financing (Anti-Money Laundering Act, AMLA)1 of 10 October 1997 (Status as of 1 March 2024)(FINMA) (Fedlex)

• As per Article 3 of Section 1, when establishing a business relationship, the financial intermediary must verify the identity of the customer using a document of evidentiary value.
• If the customer is a legal entity, the financial intermediary must verify the identity of the persons who enter into the business relationship on behalf of the legal entity.
• According to Article 4 the financial intermediary must identify the beneficial owner with due diligence to ensure they know who the beneficial owner is. This includes obtaining a written declaration from the customer about the beneficial owner’s identity under certain conditions
• Article 6 mandates that the financial intermediary must ascertain the nature and purpose of the business relationship wanted by the customer. This includes clarifying the economic background and purpose of a transaction if it appears unusual or carries a higher risk
• As per Article 9, a financial intermediary must file a report with the Money Laundering Reporting Office Switzerland if it knows or has reasonable grounds to suspect that assets involved in the business relationship are connected to an offense under articles related to terrorism or money laundering, or if the assets are the proceeds of a felony or serve the financing of terrorism
• Article 10 mandates the financial intermediary shall freeze the assets related to the report as soon as the Reporting Office informs it that it is transmitting the reported information to a prosecution authority.
• Under Article 10a, the financial intermediary is prohibited from informing the persons concerned or third parties that it has filed a report under specific articles related to AML activities

Federal Gaming Board (FGB)

Gaming Compliance in Switzerland

The Federal Gaming Board (FGB) in Switzerland regulates the country’s gambling sector by granting licenses, ensuring legal compliance, and monitoring operations for fairness and anti-money laundering efforts.

Federal Gambling Act (Gambling Act BGS) dated 29 September 2017 (as of 1 January 2021)(GESPA)

• As per Article 8 granting a casino license must be backed by certain requirements including demonstrating economic viability, ensuring proper tax arrangements, and illustrating the economic benefits to the local region.
• The requirement for casinos and organizers of large-scale games to develop a security concept that includes measures to ensure a secure and transparent gaming operation and combat money laundering. This involves documenting organizational structures, operating procedures, responsibilities, and maintaining a control system to review and document betting and payout transactions​​
• As per Article 67, Casinos and organizers of major games are subject to the Money Laundering Act of 10 October 1997. Casinos and organizers must abide by due diligence obligations in the fight against money laundering, adjusted according to the risks associated with the game and its sales channel​​.
• As per Article 68 the contracting party can be identified based on a self-declaration when establishing business relations. Furthermore, identification is required if monthly stakes or single or cumulative monthly winnings reach a significant value​​.
• ​​As per Article 97, the regulatory body is responsible for overseeing compliance with legal provisions regarding casinos. This includes monitoring the executive bodies and operations of casinos, ensuring adherence to obligations for preventing money laundering, and implementing security and social concepts​​.
• As per Article 98 inspections must be carried out against casinos and companies involved in manufacturing and trading gaming equipment. This includes conducting inspections at casinos and requesting necessary information and documents from the auditors of the casinos​​.
• As per Article 102 there must remain mutual support and information exchange between the regulatory body and administrative authorities at various levels (federal, cantonal, municipal) to fulfill their respective legal tasks, including information about preventing money laundering​​.

Sources:

https://www.fedlex.admin.ch/eli/cc/2008/736/en#annex_u1
https://www.gespa.ch/en/regulation-and-licensing/regulation