Recognition

As has been described, financial intermediaries from the non-banking sector (Art. 2 Para. 3 GwG) have the option of joining a self-regulating organisation. In this conjunction, self-regulating organisations must be recognised by the FINMA before they may commence their activities.

Recognition of an SRO is conditional upon these (cf. Art. 24 GwG):

  • having regulations that correspond to the criteria set out under Art. 25 GwG;
  • monitoring to ensure that its member financial intermediaries adhere to their due diligence obligations and to their obligations in cases of suspected money laundering; and
  • ensuring that the persons and auditors to whom commissions to conduct the checks:
    • have the necessary specialist expertise,
    • provide assurance for proper audit activities, and
    • are independent of the management and administration of the financial intermediaries which they are expected to audit.

If the preconditions are fulfilled, the corresponding SRO shall be recognised. The standardised requirements are designed to ensure that an SRO is able to fulfil its remit within the context of long-term supervision, and is indeed able to enforce sanctions against the financial intermediaries who are subordinated to it.

Special aspect

On account of the scope and characteristics of their business operations, the Swiss Post Office as well as licensed transport companies pursuant to the Swiss Passenger Transport Act (“Personenbeförderungsgesetz”) (SBB) are obliged to create dedicated self-regulating organisations which are independent of the management (cf. Art. 24 Para. 2 GwG).