Self Regulatory Organization (SRO)
The VQF, originally established as a quality assurance organization for the financial center of Zug, has held the function of an official, FINMA-recognized Self-Regulatory Organization (SRO) pursuant to the Anti-Money Laundering Act (AMLA) since 1998.
The Association is obliged to monitor duties arising from the Anti-Money Laundering Act and/or the rules of professional conduct. In addition, the VQF carries out periodic audits on members, trains them in matters concerning the Anti-Money Laundering Act and also represents their interests in the legislative and political arena.
Swiss Financial Market Supervisory Authority (FINMA)
The Anti-Money Laundering Act states that financial intermediaries can become members of a self-regulatory organization under civil law as a way of ensuring compliance with due diligence requirements. This is an alternative to direct supervision by FINMA.
SRO regulations and any amendments to them must be approved by FINMA. They define how affiliated financial intermediaries must implement the legal requirements under AMLA, including the requirement to establish the identity of all contractual partners and beneficial owners and the duty to report any suspicion of money laundering. They also define how SROs monitor compliance with these requirements (e.g. through periodic checks by internal or external auditors) and how breaches of the requirements are penalized. An SRO can impose penalties on its members and suspend them.