FINMA Finalises Revised Anti-Money Laundering Ordinance Ahead of January 2027 Implementation

The Swiss Financial Market Supervisory Authority (FINMA) has published the final version of its partially revised Anti-Money Laundering Ordinance (AMLO-FINMA), confirming that the amendments will enter into force on 1 January 2027. The revision takes account of recent changes to Switzerland’s Anti-Money Laundering Act and the Federal Council’s Anti-Money Laundering Ordinance, while also addressing preparations for the country’s forthcoming mutual evaluation by the Financial Action Task Force (FATF).

The announcement, made on 10 November 2026, follows a public consultation on the proposed amendments. Alongside the revised ordinance, FINMA has recognised updated versions of the Swiss banks’ Code of Conduct on Due Diligence and the regulations of the Self-Regulatory Organisation of the Swiss Insurance Association (SRO-SVV) as minimum standards. Both sets of self-regulatory rules will also take effect on 1 January 2027 and provide for a four-month transitional period.

The revised framework places particular emphasis on transparency regarding the ownership and control of customers, the treatment of certain correspondent banking relationships and measures designed to prevent breaches of sanctions and other coercive measures imposed under Switzerland’s Embargo Act.

One important area concerns the requirement for financial intermediaries to understand the ownership and control structures of their contracting parties. The explanatory material accompanying the revised ordinance clarifies how this requirement interacts with existing provisions addressing complex structures and domiciliary companies. It also explains the risk-based approach to enquiries and the associated documentation expectations.

The emphasis is not simply on collecting corporate records or identifying registered shareholders. Financial intermediaries are expected to establish an adequate understanding of the relevant ownership and control arrangements, with the depth of their enquiries reflecting the risks and complexity of the relationship. The supporting documentation should provide a clear account of how the institution reached its conclusions.

The revision also clarifies requirements concerning correspondent banking relationships with foreign banks. Following the consultation, FINMA amended the relevant provisions to specify that Article 37 paragraph 5 of AMLO-FINMA applies only to clients who have direct access to the correspondent bank’s accounts. In these circumstances, the provisions address the need for the correspondent bank to obtain assurance that the contracting institution has fulfilled its due diligence obligations and can provide relevant supporting records when requested.

This clarification is intended to define the scope of the requirement more precisely and distinguish arrangements involving direct account access from other correspondent banking payment relationships.

Sanctions compliance is another significant element of the revised framework. The amendments introduce measures intended to prevent breaches of coercive measures imposed under the Embargo Act. The explanatory material has been supplemented to clarify how provisions concerning the monitoring of business relationships and transactions are to apply by analogy in this context.

The inclusion of these measures reinforces the importance of effective controls for identifying and addressing potential sanctions exposure. Financial intermediaries will need to consider how relevant customer and transaction information is assessed, how potential concerns are escalated and how decisions are documented. Sanctions compliance remains a distinct legal obligation, even where some of the underlying monitoring arrangements overlap with anti-money laundering controls.

The regulatory changes also have implications for certain advisory activities. Recent amendments to Switzerland’s Anti-Money Laundering Act have broadened its scope to cover specified advisory services. As a result, FINMA has issued separate supervisory guidance explaining the scope of its Circular 2011/1, which concerns activities qualifying as financial intermediation under the AMLA, and clarifying supervisory responsibilities in relation to advisory services.

The guidance distinguishes between advisory activities carried out by institutions directly supervised by FINMA and activities falling under other applicable supervisory arrangements. Firms will therefore need to assess the nature of the services they provide and their regulatory status when determining which obligations and supervisory framework apply.

The changes form part of Switzerland’s wider efforts to strengthen its anti-money laundering and counter-terrorist financing framework in line with international standards. The forthcoming FATF mutual evaluation provides an important context for the revision, particularly in relation to the effectiveness of customer due diligence, transparency of ownership structures and the ability of financial institutions to identify and manage financial crime and sanctions risks.

For banks, insurance-sector intermediaries and other institutions subject to the revised requirements, the approaching implementation date makes an assessment of existing compliance arrangements important. This may involve reviewing customer due diligence procedures, ownership and control assessments, correspondent banking arrangements, sanctions controls, transaction monitoring processes and the allocation of responsibilities for newly covered advisory services.

Institutions should also distinguish between the implementation timetable for the ordinance and the transitional arrangements applicable to the two recognised self-regulatory standards. The four-month transition applies to each set of self-regulatory rules and should not be treated as a general extension of the ordinance’s commencement date.

With the revised AMLO-FINMA and the recognised self-regulatory standards scheduled to take effect on 1 January 2027, Swiss financial institutions have a limited period to assess the impact of the changes and ensure that their policies, procedures and operational controls reflect the updated requirements.

By fLEXI tEAM