In recent years, Swiss governmental authorities have addressed money laundering issues by amending anti-money laundering (“AML”) legislation and enhancing the legal and regulatory enforcement of these laws. The Swiss Financial Market Supervisory Authority (“FINMA”), as the regulator of the Swiss financial industry, has recently demonstrated heightened determination in enforcing substantial penalties on banks that violate AML regulations.

On 17 September 2024, FINMA demonstrated its determination by announcing robust AML-related actions against a notable Swiss private bank. FINMA stated that in June 2023, it concluded enforcement proceedings against the financial institute, determining that it had violated its AML obligations under Swiss law and had “seriously violated provisions of financial market law concerning adequate organisation (governance), risk management and money laundering prevention over a prolonged period.” FINMA undertook the atypical actions of seizing CHF 12.7 million in illicitly obtained profits, initiating three proceedings against individuals, and barring the private bank from onboarding new clients associated with heightened money-laundering risks until adherence to Swiss financial market regulations is reinstated.

In a newly published article, Jonathan J. Rusch, elucidates the context and rationale behind FINMA’s actions and offer some insights about its relevance.