SRO and AML membership: who has to do it

In Switzerland, combating money laundering is not a formality: it is a legal obligation with criminal consequences. Anyone who carries on a financial intermediation activity on a professional basis must be subject to the Anti-Money Laundering Act (AMLA). And for most operators the point of entry is membership of an SRO. Let’s look at who actually has to do it.

What an SRO is

SRO stands for self-regulatory organisation. It is a body recognised by FINMA that supervises its members’ compliance with anti-money laundering obligations: client identification, establishing the beneficial owner, monitoring relationships and reporting suspicious transactions.

“Non-bank” financial intermediaries have two routes:

• join an SRO, which verifies the AMLA obligations through periodic audits;
• or, for specific activities, obtain a direct FINMA authorisation.

Banks, insurers and asset management companies follow their own regimes. The SRO is the typical channel for financial intermediation in the so-called para-banking sector.

Who is a “financial intermediary”

The AMLA does not look at the name of the activity, but at its economic substance. In principle, a financial intermediary is anyone who, on a professional basis:

• accepts or holds third-party assets;
• helps to invest or transfer them;
• carries out credit, leasing or factoring transactions;
• provides services in the payment traffic;
• trades in banknotes, coins, precious metals or virtual currencies;
• carries out exchange transactions.

The professional character is decisive: it is assessed on the basis of gross revenue thresholds, the number of business relationships, volumes handled and the continuity of the activity. An isolated transaction is a different matter from an organised, recurring activity.

The crypto case

The most sensitive point today concerns digital assets. Anyone who exchanges virtual currencies for fiat money, who transfers them on behalf of third parties or who holds the keys for clients typically falls within the AMLA perimeter. An exchange, a custody service or a crypto payments provider cannot operate without an anti-money laundering framework.

Take note: issuing a token or carrying out a blockchain project does not automatically imply subjection. What counts is the economic function. That is why the first thing to do is not to rush into membership, but to classify the activity: what token it is, what value flow it generates, who controls the funds. A legal opinion on this perimeter avoids both the risk of operating unlawfully and the cost of a membership that was not needed.

What membership involves

Being an SRO member is not a rubber stamp. It means building and maintaining a complete anti-money laundering framework:

1. Internal AMLA directives proportionate to the risk of the activity.
2. KYC procedures: client identification and establishing the beneficial owner.
3. Risk profiling of relationships and enhanced clarifications for high-risk relationships.
4. Ongoing monitoring of transactions and business relationships.
5. Reporting of suspicious transactions to the Money Laundering Reporting Office (MROS).
6. Staff training and periodic AMLA audits by the SRO.

The linchpin of all this is the role of the AMLA Officer: the person who oversees the function, updates the directives, decides on reports and liaises with the supervisory body. It is not a theoretical role. Our team has hands-on experience as an AMLA Officer, and this changes the way we set up the framework: practical, sustainable, ready to withstand an audit.

What happens if you don’t join

Carrying on a financial intermediation activity subject to the AMLA without membership or authorisation is an unlawful activity. The consequences range from liquidation of the activity to FINMA proceedings, up to criminal exposure for money laundering. These are risks that far exceed the cost of structuring yourself well from the outset.

How to set up the path

The right order of steps saves time and money:

• Classification: is your activity subject to the AMLA? On what basis? With which thresholds?
• Choice of regime: SRO membership or FINMA authorisation, depending on the services.
• Building the framework: directives, KYC procedures, risk model, roles.
• Membership and audit: dossier to the SRO and preparation for the first review.

SIH ONE handles the structuring and advisory: we define the perimeter, prepare the documentation set-up and coordinate the path. Activities subject to authorisation, where needed, go through authorised partners, so you never stay in a grey area.

Want to understand whether your activity falls under the AMLA and how to structure yourself without risk? Let’s talk: together we define the perimeter and the concrete next steps.