SWITZERLAND Trends and Developments Contributed by: Jean-Marc Carnicé, Canonica Valticos Carnicé & Associés
From Gatekeepers to Key Players: Evolving Duties of Swiss Financial Intermediaries Amid Global Trends in Fraud and Asset Tracing The present article will examine how Swiss financial intermediaries’ duty to report suspi - cious transactions is evolving through recent case law and upcoming legislative reforms. It will situate these developments within the broader international context of asset tracing and anti- fraud efforts, reflecting a global trend toward increased transparency, accountability, and cross-border co-operation. Contextualising Swiss AML duties in the global fight against fraud and asset recovery In recent years, the international legal and regula - tory landscape surrounding fraud prevention and asset tracing has undergone significant trans - formation. As financial crime schemes become increasingly complex, transnational, and digitally enabled, the international community – through institutions such as the Financial Action Task Force (FATF) – has placed growing emphasis on the role of private-sector actors in preventing the misuse of the global financial system. Private-sector entities such as financial institu - tions, asset managers, and fiduciaries, are now required to play a proactive role in identifying and combating illicit financial flows. These actors are no longer expected merely to avoid complicity in unlawful conduct; rather, they are now required to actively monitor, assess, and report suspi - cious transactions. In doing so, they serve as crucial gatekeepers and early warning mecha - nisms in the broader international framework for detecting fraud and tracing hidden or laundered assets, but also face expanded responsibilities and increased obligations. This approach is consistent with international standards, particularly those established by
FATF, which emphasise the importance of a risk-based approach and impose due diligence and reporting obligations on designated non- public actors involved in financial and advisory services. Switzerland, as a major international financial centre with a long-standing tradition of banking secrecy and client confidentiality, finds itself at a regulatory crossroads in this context. Histori - cally cautious in expanding financial transpar - ency measures, Switzerland has faced increas - ing pressure from the international community to tighten its AML framework and enhance its contribution to global asset recovery efforts. The present article seeks to examine the evolv - ing role of Swiss financial intermediaries under domestic law – particularly their duty to report suspicious transactions under the Anti-Money Laundering Act (AMLA) – and to analyse recent case law and legislative developments that illus - trate a shifting balance between client confiden - tiality, regulatory compliance, and international co-operation. Legal basis of the duty to report suspicious transactions under Swiss law Under Article 9 (a) (1) AMLA, financial interme - diaries must immediately file a report with the Money Laundering Reporting Office Switzerland (MROS) if they know or have reasonable grounds to suspect that assets involved in a business relationship are connected to criminal activi - ties like money laundering (Article 305bis Swiss Criminal Code) or organised crime (Article 260ter Swiss Criminal Code). The suspicion does not need to reach certain - ty, but it must be based on concrete signs or evidence that suggest illicit behaviour. Once suspicions arise, the financial intermediaries
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