Switzerland Updates Sanctions Rules Covering Iran, North Korea and Terrorist Financing

Switzerland has introduced amendments to four sanctions ordinances implementing United Nations Security Council measures targeting Iran, North Korea, the Taliban and individuals and organisations associated with ISIL (Da’esh) and Al-Qaeda. The amendments, adopted by the Federal Council on 25 September 2026, came into force on 1 November 2026.

The changes aim to harmonise and clarify financial restrictions, particularly those relating to asset freezes, blocked accounts, payment exemptions and regulatory reporting obligations.

Under the revised provisions, certain payments, including interest, earnings and funds received from third parties, may be credited to blocked accounts, provided the funds remain frozen and cannot be made available to designated parties. Specific reporting obligations to the State Secretariat for Economic Affairs (SECO) also apply.

Financial institutions holding or administering relevant frozen assets must ensure that the required notifications are submitted without delay. Institutions that have previously reported frozen assets are also required to provide annual balance information, reflecting amounts held as at 31 December, by 15 February of the following year.

The amendments introduce specific reporting requirements concerning accounts maintained for North Korean diplomatic and consular missions, including accounts belonging to relevant personnel and their family members.

Switzerland has also clarified humanitarian exemptions, including certain transfers involving food, medicines, healthcare and humanitarian assistance. Under the revised Iran sanctions framework, exemptions from notification and authorisation requirements have additionally been extended to certain transactions involving international organisations.

For banks, payment service providers and other regulated entities, the changes highlight the importance of maintaining accurate sanctions screening systems, effective asset-freezing procedures and timely regulatory reporting.

Compliance teams should review their sanctions policies, blocked-account controls and transaction-processing procedures to ensure that the revised requirements are properly reflected in operational practices.