- Business relationships with PEPs (politically exposed persons) are not prohibited, but the law requires the banks to treat such relationships with greater care. Switzerland‟s regulations on the handling of business relationships involving PEPs fulfil or exceed the FATF provisions, which are the international standard. Switzerland‟s supervisory approach is also considered to be compliant at the international level. FINMA has not identified any need for action in terms of anti-money laundering regulations where PEPs are concerned.
- The imposition of three freezing orders by the Federal Council prompted FINMA to carry out an extraordinary audit of the handling of PEP relationships at twenty banks.
- The banks are aware of their obligations under the Anti-Money Laundering Act (AMLA) in connec-tion with PEPs and, in the majority of cases, implement them in a satisfactory manner. Some of the banks audited complied in full with their AMLA obligations in connection with the PEP rela-tionships examined. At the other banks, where minor shortcomings were identified, FINMA is monitoring the implementation of the measures initiated by those banks to remedy them and is stepping up the intensity of its general anti-money laundering supervision.
- FINMA has intervened by way of administrative proceedings against four of the banks audited, where more serious lapses have still to be investigated.
News report link : here
Detailed report link: here