On 13 August 2025, the Swiss government adopted the Ordinance on the harmonization of sanctions ordinances (“Ordinance”), introducing a number of provisions relating to financial sanctions and their exceptions and derogations in relation to 14 of the 28 sanctions regimes in force in Switzerland (already briefly mentioned here). The Ordinance will come into effect on 15 September 2025.
The sanctions regimes affected by the amendments introduced by the Ordinance are the following:
- Ordinance of 19 March 2002 on measures against Zimbabwe
- Ordinance of 10 April 2024 on measures against persons and organizations that support Hamas or the Palestinian Islamic Jihad
- Ordinance of 16 March 2022 on measures against Belarus
- Ordinance of 4 December 2015 on measures against Burundi
- Ordinance of 10 April 2024 on measures concerning Guatemala
- Ordinance of 24 February 2010 on measures against Guinea
- Ordinance of 1 June 2012 on measures against Guinea-Bissau
- Ordinance of 11 November 2015 on measures against the Islamic Republic of Iran
- Ordinance of 28 June 2023 on measures concerning Moldova
- Ordinance of 17 October 2018 on measures against Myanmar
- Ordinance of 24 June 2020 on measures against Nicaragua
- Ordinance of 8 June 2012 on measures against Syria
- Ordinance of 4 March 2022 on measures in connection with the situation in Ukraine
- Ordinance of 28 March 2018 on measures against Venezuela
In essence, the following common amendments have been introduced:
- A new exception has been introduced for humanitarian activities in sanctions ordinances that previously lacked same, so that the prohibition on transferring or making funds or economic resources available will not apply to humanitarian activities, or other activities to meet basic human needs. The exception applies to activities carried out by public bodies or by companies and organizations that receive federal contributions for the implementation of humanitarian activities or by the United Nations and its related organizations; international organizations; humanitarian organizations with observer status in the United Nations General Assembly and its members; bilaterally or multilaterally funded nongovernmental organizations that participate in United Nations humanitarian aid plans, refugee assistance plans, other United Nations appeals or humanitarian structures coordinated by the United Nations Office for the Coordination of Humanitarian Affairs. It also applies to the employees, contribution recipients, subsidiaries or implementation partners of the abovementioned organizations acting in this capacity (Zimbabwe, Belarus, Burundi, Guinea, Guinea-Bissau, Myanmar, Nicaragua,Venezuela).
- A new exception to the prohibition on transferring or making funds or economic resources available has been introduced. As a result of this new exception, the prohibition will not apply to interest and other income credited to frozen accounts, as well as payments based on existing contracts or payments based on arbitral awards or judicial or administrative decisions issued or enforceable in Switzerland, the European Economic Area or the United Kingdom, if the credited amounts remain frozen. The same applies to funds transferred by third parties to frozen accounts held by designated persons (Zimbabwe, Hamas, Belarus, Burundi, Guatemala, Guinea, Guinea-Bissau, Iran, Moldova, Myanmar, Nicaragua, Syria, Ukraine,Venezuela).
- Where necessary, the licensing grounds with respect to the same financial sanctions have been harmonized (Zimbabwe, Belarus, Burundi, Guinea, Guinea-Bissau, Moldova, Myanmar, Nicaragua, Syria, Ukraine,Venezuela).
- In most of the ordinances, it has been clarified that the reporting obligations regarding the freezing of accounts and economic resources apply to all organizations — not only financial institutions — that hold or manage funds, or are aware of funds or economic resources that are likely to be subject to the asset freeze. Financial institutions must report to the State Secretariat for Economic Affairs (SECO) by 15 February each year the amounts held or managed as of 31 December of the previous year. Credits to frozen accounts held by designated persons must be reported to SECO without delay. It has also been clarified that the corresponding reports must include: (i) the names of the beneficiaries; (ii) the purpose and value of the frozen funds and economic resources; and (iii) in the case of credits, the names of the issuers (Zimbabwe, Hamas, Belarus, Burundi, Guatemala, Guinea, Guinea-Bissau, Iran, Moldova, Myanmar, Nicaragua, Syria, Ukraine,Venezuela).
- Introduction of the prohibition to fulfil certain claims and of the shifting of the burden of proof regarding claims impaired by sanctions. In proceedings to enforce a claim, the claimant will bear the burden of proving: (i) that the claim is not impaired by applicable sanctions; and (ii) that the claimant is not a designated person; a public agency or national or incorporated in the sanctioned country; or owned or controlled by them (Belarus, Burundi, Iran, Moldova, Myanmar, Nicaragua, Ukraine, Venezuela).
Next in line is Switzerland’s (substantive) implementation of the latest (18th) EU sanctions package expected this month.
Baker McKenzie Switzerland
