Knowledge

What are the consequences of deficiencies in AML organisation?

Deficiencies in AML organisation can have consequences at three levels: they are recorded in the audit and must be remedied; the institution may face supervisory measures or SRO sanctions; and responsible individuals may be held personally accountable. Training is one building block of the framework. Training deficiencies alone do not automatically lead to these consequences; severity and the overall picture in the individual case are decisive.

Last updated: 2 November 2026 · Author: Iman Gonzalez Prada

What the law requires of the organisation

Under Art. 8 AMLA, financial intermediaries must take the organisational measures needed to prevent money laundering and terrorist financing; in particular, they must ensure adequate training of staff and controls. The same applies to advisors under Art. 8d AMLA. For financial intermediaries supervised by FINMA, Art. 27 AMLO-FINMA specifies regular training of all employees concerned.

First level: audit and remediation

FINMA-supervised institutions: The audit firm reports and makes the report available to the highest governing body. If it identifies breaches of supervisory provisions or other irregularities, it sets an appropriate deadline for restoring compliance. If the deadline is not met, it informs FINMA; in the event of serious breaches, it notifies FINMA without delay (Art. 27 FINMASA).

SRO members: The SRO’s regulations define how compliance with the obligations is checked (Art. 25 para. 3 let. b AMLA). Deficiencies identified are recorded in the audit.

Second level: the institution

FINMA-supervised institutions: FINMA ensures that compliance with the law is restored (Art. 31 FINMASA). In the event of serious breaches, the law provides, among other things, for:

a declaratory ruling (Art. 32 FINMASA),
publication of the final ruling (Art. 34 FINMASA),
confiscation of the profit made (Art. 35 FINMASA),
in extreme cases, withdrawal of the licence (Art. 37 FINMASA).

FINMA decides which tool to use in each individual case.

SRO members: The SRO’s regulations provide for sanctions in the form of warnings, reprimands and contractual penalties (Art. 25 para. 3 let. c AMLA) and govern exclusion (Art. 25 para. 3 let. a AMLA). The SRO reports exclusion decisions to FINMA (Art. 27 para. 2 AMLA). The amounts are set out in your SRO’s regulations.

Third level: responsible individuals

Professional ban (FINMA-supervised entities only): In the event of a serious breach of supervisory provisions, FINMA may prohibit the responsible individual from acting in a management capacity at an entity it supervises for up to five years (Art. 33 FINMASA).
Breach of the duty to report: a fine of up to CHF 500,000 if intentional and up to CHF 150,000 if negligent; in minor cases, prosecution is waived (Art. 37 AMLA).
Lack of due diligence in financial transactions: Anyone who professionally accepts, holds, or helps to invest or transfer third-party assets and fails to establish the identity of the beneficial owner with the required diligence is liable to a custodial sentence of up to one year or a monetary penalty (Art. 305^ter para. 1 SCC).

What role training plays

Training is not a sanction provision in its own right. The law links the consequences above to breaches of supervisory provisions or to specific criminal offences, not to a single missing training session. It is, however, a building block of the organisation: employees who know their obligations and recognise risks reduce the risk of such breaches. The evidence shows the audit that the training obligation is being met.

What management and the board can check

Training, controls and responsibilities are set out in the internal directives.
Findings from the last audit and their remediation are known and tracked.
All persons concerned are covered, including new employees.
The content reflects the current law, for example after the AMLA revision of 1 October 2026.
Every training session is documented traceably for each person.

Sources

This article provides an overview and does not constitute legal advice. The cited legislation and your SRO’s regulations are authoritative; legal provisions are paraphrased in English.

The FinReg Swiss AML training records every completion automatically – with date, content, version and test result for each person.

The training “Training records” checklist