FINMA Updates Hamas/PIJ Sanctions: Obligations for Swiss Financial Intermediaries
Switzerland's Federal Department of Economic Affairs, Education and Research (EAER) amended the annex to its ordinance on measures against persons and organisations supporting Hamas or Palestinian Islamic Jihad (SR 946.231.09) on 15 June 2026. FINMA published the update on 17 June 2026, simultaneously refreshing the official Swiss sanctions database SESAM (SECO Sanctions Management). The measures took effect at 23:00 on 16 June 2026. Every financial intermediary operating under Swiss law must act now.
What Changed in the SR 946.231.09 Annex
Annex amendment and SESAM update
The EAER revised the annex listing designated persons and entities connected to Hamas or Palestinian Islamic Jihad (PIJ). Alongside the formal legal amendment, SECO updated SESAM, the live sanctions database that Swiss financial intermediaries are expected to screen against. The two steps happened in tandem, giving institutions the authoritative, machine-readable list they need to act on the same day.
Effective date and timing
Although the annex was amended on 15 June and FINMA published the notice on 17 June, the operative date for compliance purposes is 16 June 2026 at 23:00. Firms that run nightly batch-screening cycles should verify that the 16 June effective date is captured correctly in their workflow logs. A mismatch between the legal effective date and the screening run date could create a gap regulators will scrutinise.
Obligations for Financial Intermediaries
Asset freeze and prohibition on dealing
The ordinance imposes a direct prohibition on providing funds or economic resources to designated parties. Financial intermediaries must freeze any assets belonging to, or controlled by, a newly listed person or entity without delay. This is not a "notify first" framework; the freeze obligation attaches at the moment the sanction is effective, not when SECO receives a report.
Reporting to SECO
Intermediaries who identify an affected business relationship must report it to SECO. The FINMA notice is explicit that this SECO report does not replace other obligations. Filing with SECO is a sanctions-specific requirement. It is separate from, and runs parallel to, the AML regime.
AML due diligence under Art. 6 AMLA
Where a match or near-match gives rise to suspicion beyond the sanctions nexus itself, intermediaries must carry out the enhanced due diligence required by Article 6 of the Swiss Anti-Money Laundering Act (AMLA). This means obtaining background information on the transaction, the counterparty, and the economic rationale. The sanctions match alone does not satisfy this obligation.
Suspicious activity reporting under Art. 9 AMLA
If enhanced due diligence fails to dispel suspicion, a separate report must be filed with the Money Laundering Reporting Office Switzerland (MROS) under Article 9 AMLA. The FINMA notice uses the word "unverzüglich" (immediately). There is no room for delay pending legal review or management sign-off once the threshold is met.
Swiss intermediaries that use automated sanctions screening should cross-reference pre- and post-designation sanctions screening obligations to ensure their controls capture name additions at the moment of legal effect rather than the next scheduled refresh cycle.
Practical Steps for Compliance Teams
Immediate actions
Compliance officers should treat this as a three-stage task. First, run a targeted screening pass against the updated SESAM list for all active customer relationships and correspondent accounts. Second, document the results and any matches or near-matches with timestamps. Third, escalate any positive matches through the dual-reporting chain: SECO notification for the sanctions freeze, and MROS if suspicion persists after enhanced due diligence.
Record-keeping and audit trail
Swiss regulators expect to see a clear audit trail showing when the updated list was ingested, when screening ran, which relationships were checked, and what decisions were taken. Given that the effective date and the publication date differ by a day, documenting the exact sequence matters. Teams that rely on robust FINMA money laundering risk analysis and compliance controls will find it easier to produce this evidence on request.
Crypto and virtual asset service providers
Virtual asset service providers (VASPs) authorised or registered in Switzerland are financial intermediaries under AMLA and are fully in scope. On-chain assets controlled by a newly designated person must be frozen. Travel rule data attached to transactions involving sanctioned addresses needs to be preserved for potential MROS filings. The decentralised nature of the underlying asset does not reduce the legal obligation.
Frequently Asked Questions
Does the SECO report replace the MROS suspicious transaction report?
No. FINMA is explicit: reporting a frozen relationship to SECO is a sanctions-specific obligation. If enhanced due diligence under Art. 6 AMLA does not resolve suspicion, a separate STR to MROS under Art. 9 AMLA is still required without delay.
When exactly did the sanctions take effect?
The measures entered into force on 16 June 2026 at 23:00. FINMA published the notice on 17 June 2026. Screening runs and freeze decisions should be dated against the 16 June effective time, not the publication date.
Where can firms access the updated list?
The authoritative list is maintained in SESAM, the SECO Sanctions Management database. FINMA's notice confirms that SECO updated SESAM on 17 June 2026 in parallel with the legal publication.
Are virtual asset service providers covered?
Yes. VASPs operating under a Swiss FINMA licence or registration are financial intermediaries under AMLA. The freeze and reporting obligations apply in full, including to on-chain assets and Travel Rule data.
What if a match is a false positive or a name collision?
Intermediaries should apply the enhanced due diligence process under Art. 6 AMLA to resolve the doubt. If the doubt can be dispelled with documented evidence, no MROS report is required. If it cannot be dispelled, the STR obligation triggers immediately under Art. 9 AMLA.
Source: FINMA Switzerland
FAQ
No. Reporting a frozen relationship to SECO is a sanctions-specific obligation under SR 946.231.09. If enhanced due diligence under Art. 6 AMLA does not resolve suspicion, a separate STR to MROS under Art. 9 AMLA is still required without delay. The two reports serve different legal purposes and neither substitutes for the other.
The measures entered into force on 16 June 2026 at 23:00. FINMA published the notice on 17 June 2026. Firms should date their screening runs and freeze decisions against the 16 June effective time rather than the publication date, to avoid a documented compliance gap.
The authoritative list is maintained in SESAM, the SECO Sanctions Management database. FINMA confirmed that SECO updated SESAM on 17 June 2026 in parallel with the formal legal publication. Intermediaries should ingest the updated SESAM data directly rather than relying on third-party aggregators alone.
Yes. VASPs that hold a FINMA licence or are registered under Swiss law qualify as financial intermediaries under the Anti-Money Laundering Act. The freeze obligation, SECO reporting requirement, and potential MROS reporting duty apply in full, including to on-chain assets and Travel Rule information attached to sanctioned addresses.
Apply the enhanced due diligence process under Art. 6 AMLA and document the investigation thoroughly with timestamps and evidence. If the doubt is resolved, no MROS report is required but the documentation should be retained. If doubt persists after reasonable enquiry, the STR obligation under Art. 9 AMLA triggers immediately.