SWITZERLAND AND USA: Surprising deal to exchange sanctions information!

SWITZERLAND AND USA: Surprising deal to exchange sanctions information!

The US and Switzerland have reached a significant agreement that will facilitate the exchange of information on sanctions between the two countries. This memorandum of understanding, also known as a Memorandum of Understanding (MoU), was concluded on May 9, 2022, but has only now been publicly announced. The agreement was published by the US Treasury Department and signed by Simon Plüss from the State Secretariat for Economic Affairs (Seco) and Lisa M. Palluconi from the Office of Foreign Assets Control (Ofac). According to the NZZ, this exchange will help to more effectively design and coordinate the monitoring and implementation of sanctions that apply in both countries. NZZ reports that...

However, the challenges of information sharing should not be underestimated. Despite the positive aspects of the agreement, there are concerns in Switzerland, particularly in view of former ambassador Scott Miller's previous critical comments on international cooperation with the USA. This increases the surprise about the agreement. The Klepto-Capture task force, which dealt with sanctioning oligarchs, was recently disbanded, raising questions about future cooperation. Seco puts the importance of this agreement into perspective and announces that it will examine further MoUs for cooperation.

Legal framework of the agreement

The declaration of intent does not create any new legal obligations or rights and also has no direct impact on the Swiss Federal Council's sanctions policy. The basis for the agreement is the embargo law, and information may only be passed on if the informant has given his consent or is required by law. It is also made clear that there are no legal or financial obligations and that the exchange is only taking place to enforce the sanctions measures of both countries.

In the broader context of sanctions, SECO is the contact person for inquiries about blocked mail. These requests can be sent to the email address sanctions@seco.admin.ch. To speed up the process, SECO recommends submitting a copy of your identification documents as well as the shipment number and intended use of the goods. The processing time for these requests has been extended due to the high number of requests. For general questions, we are available by telephone from Tuesday to Thursday. SECO highlights that…

From December 6, 2023, a new format will also be made available that includes XML overall lists of sanctioned individuals, companies and organizations as well as changes to the annexes to the regulations. This further shows that Switzerland is striving to improve transparency and efficiency in dealing with sanctions. In particular, starting April 1, 2024, a change will be implemented that allows having multiple sanction set id for the same target ssid. This could increase flexibility and accuracy in sanctions management.