The case

Are the two directives on the seizing of illegal assets as well as the ones on the sanctions going to be implemented in Switzerland?

Source: Federal Council(German, French, Italian)

The commentary

Yesterday the Federal Council adopted the reports on two EU guidelines. One guideline concerns the absorbing and seizing of illegally acquired assets, the other guideline is about violations of sanctions. Both reports compare the EU guidelines with current Swiss law.

Absorbing und seizing illegal assets is going to facilitate cross-border cooperation within the EU as well as with third countries, though one must distinguish between this guideline and the efforts made by the EU to use for the Ukraine any extra yield created on assets that Russia acquired legally but which have been frozen due to sanctions against Russia. – An analysis shows that the regulation provided under Swiss law is mostly similar to the one provided under EU law though there are some differences, e.g. concerning the authorities in charge for absorbing these illegal assets as well as the ways they can be seized and the strategic framework in place for absorbing the illegal assets. The ministries in charge are going to keep monitoring the development on an international level.

Prosecuting and punishing violations of sanctions: The report has come to the conclusion that the respective legal framework in Switzerland is similar to the one of the EU. Just like in the EU, the Swiss legal basis provides for fines, financial penalties and imprisonment when sanctions are violated. With the Embargo Act (SR 946.231), which entered into force 20 years ago, Switzerland is well armed to punish violations of sanctions, e.g. financial penalty of up to CHF 540,000 or a fine of up to CHF 100,000 can be imposed on a private person. – The report also points out some differences between Swiss regulations and EU regulations, particularly when it comes to penalties imposed on companies.

This publication has been prepared solely for information purposes and is does not constitute a recommendation, a solicitation, or an offer. The information on which this publication is based has been obtained from sources that we believe to be reliable and in good faith, but we have not independently verified such information and no representation or warranty, express or implied, is made as to its accuracy. All expressions of opinion are made as of the date of publication and may be subject to change without notice. k-flash and all related affiliates accepts no liability or responsibility whatsoever for any consequential loss of any kind arising out of the use of this publication or any part of its contents. The use of this publication should not be regarded as a substitute for the exercise by the recipient of his or her own judgment. This publication is not directed to any person in any jurisdictions that prohibit such publication.