1. Applicable Financial Sanctions laws: Which national laws bring EU Russia sanctions laws into effect? If EU sanctions laws do not apply, which do?
  2. Does the same framework apply to Financial Sanctions against other countries (e.g. Iran?) If so, please provide link to relevant government website listing these.
  3. Which agency issues “licences” permitting certain activities which would otherwise be prohibited by Financial Sanctions laws?
  4. Link to Consolidated List of individuals and companies subject to Financial Sanctions
  5. Can a breach of Financial Sanctions laws be treated as a criminal offence? Please indicate the relevant law. 
  6. What are the penalties for a criminal breach of Financial Sanctions?
  7. Who investigates criminal breaches of Financial Sanctions laws?
  8. Are there non-criminal (e.g. administrative or civil) penalties and/or fines for a breach of Financial Sanctions?
  9. What are the penalties for a non-criminal breach of Financial Sanctions?
  10. Who investigates non-criminal breaches of Financial Sanctions laws?
  11. Key government guidance relating to the implementation of Financial Sanctions (e.g. FAQs)

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Switzerland
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1. Applicable Financial Sanctions laws: Which national laws bring EU Russia sanctions laws into effect? If EU sanctions laws do not apply, which do?

  • European Union ("EU") sanctions law does not apply; Switzerland has its own sanctions legislation, which is largely based on EU sanction regime but differs in certain respects.
  • The Federal Act on the Implementation of International Sanctions of 22 March 2022 ("EmbA") provides the framework legislation for sanctions in Switzerland by regulating general matters such as the objective, scope of authority, duty of disclosure, supervision of compliance, data protection, administrative and legal assistance, rights of appeal, and criminal liability. Specific measures such as those taken in relation to a particular state, regime or organization are contained in separate ordinances based on the EmbA.
  • According to the EmbA, the federal government can issue coercive measures to enforce sanctions that have been issued by the United Nations ("UN"), the Organization for Security and Co-operation in Europe ("OSCE") or Switzerland's most important trading partners (in practice: the EU) and that serve to ensure compliance with international law. As a member of the UN, Switzerland is obliged under international law to apply the sanctions decided by the UN Security Council. By contrast, the Federal Council decides on a case-by-case basis whether Switzerland will adopt the sanctions decided by the EU in whole, in part or not at all. The decision is made in each case taking into account foreign policy, foreign economic policy and legal criteria. The EmbA does not provide a legal basis for Switzerland to impose own sanctions.

The provisions of Swiss law on sanctions against Russia are codified in the Ordinance on Measures in Relation to the Situation in the Ukraine of 4 March 2022, widely corresponding to EU sanctions laws. In practice, however, in the absence of a substituted EU compliance regime, the scope of each restriction must be examined individually from the perspective of Swiss law, and EU measures cannot be followed/applied as they stand in Switzerland by assuming that the Swiss authorities have simply replicated the same package of sanctions.

  • The EmbA applies on all Financial Sanctions against any country, regime or organisation.
  • Link to the comprehensive list of sanctions covering all countries, individuals, and organisations. Clicking on a specific country will lead to the corresponding ordinance (available only in German, French, and Italian):

https://www.seco.admin.ch/seco/de/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtschaftsbeziehungen/exportkontrollen-und-sanktionen/sanktionen-embargos/sanktionsmassnahmen.html

3. Which agency issues “licences” permitting certain activities which would otherwise be prohibited by Financial Sanctions laws?

The State Secretariat for Economic Affairs ("SECO") is the agency responsible for granting exemptions from Financial Sanctions and other embargo measures. It coordinates with other government agencies such as the Federal Department of Foreign Affairs and / or the Federal Department of Finance.

5. Can a breach of Financial Sanctions laws be treated as a criminal offence? Please indicate the relevant law. 

A breach of Financial Sanctions law may entail criminal liability according to Articles 9 and 10 of the EmbA.

6. What are the penalties for a criminal breach of Financial Sanctions?

Articles 9 and 10 of the EmbA provide for penalties as follows:

  • Intentional violations may be punished by imprisonment up to one year or a monetary penalty (art. 9 para. 1).
  • Serious cases carry a penalty of up to five years' imprisonment or a monetary penalty (art. 9 para. 2).
  • Negligent offenses are punishable by a fine of up to CHF 100,000 (art. 9 para. 3).
  • Willful refusal to cooperate or providing false information can result in fines up to CHF 100,000 (art. 10 para 1).
  • Negligent violations are subject to fines up to CHF 40,000 (art. 10 para 3).

7. Who investigates criminal breaches of Financial Sanctions laws?

The SECO investigates and punishes criminal breaches of Financial Sanctions laws in the first instance pursuant to the rules of Swiss Federal Act on Administrative Criminal Law of 22 March 1974. Serious offenses may be remanded to the Federal Attorney's Office for prosecution.

8. Are there non-criminal (e.g. administrative or civil) penalties and/or fines for a breach of Financial Sanctions?

Except for the penalties provided for in Articles 9 and 10 EmbA, there are no additional penalties or fines for breaches of Financial Sanctions.

Assets obtained through a criminal breach of sanctions may be subject to confiscation pursuant to Article 13 EmbA.

Financial institutions supervised by the Swiss Financial Market Supervisory Authority ("FINMA") may be subject to enforcement proceedings if they violate certain provisions set forth in the relevant ordinance of the Federal Council. However, an enforcement, which is an administrative proceeding subject to the Administrative Procedure Act of 20 December 1968, cannot result in fines being imposed by the FINMA. Despite this lack of possibility for the FINMA to impose fines directly, the costs of the investigation are generally borne in full by the institutions under investigation and, depending on the circumstances, the FINMA may also use enforcement instruments that include disgorgement of profits. These measures can have significant financial consequences for the supervised institutions under investigation.

9. What are the penalties for a non-criminal breach of Financial Sanctions?

Except for the penalties provided for in Articles 9 and 10 EmbA, there are no additional penalties or fines for breaches of Financial Sanctions. 

10. Who investigates non-criminal breaches of Financial Sanctions laws?

In the case of supervised financial institutions, the FINMA is responsible for investigating breaches of administrative regulations resulting from an inadequate risk, compliance or governance framework with regard to sanctions.

11. Key government guidance relating to the implementation of Financial Sanctions (e.g. FAQs)

List of FINMA News on Financial Sanctions: https://www.finma.ch/en/documentation/international-sanctions-and-combating-terrorism/international-sanctions-and-independent-freezing-measures