# AMLR Art. 42 — Politically exposed persons > The AMLR applies from 10 July 2027, which is also the deadline for the AMLA guidelines under Art. 42(2). The 2025 GwG revision, which adds Art. 2a Abs. 6 but leaves the politically-exposed-person definition unchanged, is in force from 1 October 2026. See [[Effective-dates timeline]]. - **Part of:** [[AMLR]] - **FATF keying:** [[FATF R.12 - Politically exposed persons|FATF R.12]] - **Swiss provisions:** [[GwG Art. 2a - Definitions (incl. politically exposed persons|GwG Art. 2a]], [[GwV-FINMA Art. 13 - Higher-risk business relationships|GwV-FINMA Art. 13]] - **Detailed citation:** GwG Art. 2a; GwV-FINMA Art. 13 ## What it requires Beyond Article 20 customer due diligence, obliged entities must apply three measures to transactions and relationships with politically exposed persons: senior-management approval to carry out the transaction or establish/continue the relationship; measures to establish source of wealth and funds; and enhanced ongoing monitoring (Art. 42(1)). By 10 July 2027 AMLA must issue guidelines on identifying close associates and the risk level of each PEP, family-member or close-associate category, including risk assessment once a person no longer holds a prominent public function under Article 45 (Art. 42(2)). ## Swiss position GwG Art. 2a defines PEPs: foreign (Bst. a), domestic (Bst. b), and intergovernmental-organisation/international-sports-federation (Bst. c) categories, plus close associates (Abs. 2); Abs. 5 defines 'international sports federations' as the IOC and the NGOs it recognises. Domestic PEP status ends 18 months after leaving the function, general due diligence duties reserved (Abs. 4); foreign and Bst. c PEPs have no such time limit. GwV-FINMA Art. 13 sets the risk consequence: Abs. 3 makes foreign PEPs and their close associates higher-risk in every case (Bst. a-b); Abs. 4, which runs Bst. a to e, makes domestic PEPs, intergovernmental-organisation PEPs, sports-federation PEPs and their respective close associates (Bst. a-e) higher-risk only with a further risk criterion. The 2025 GwG revision (1.10.2026) adds Art. 2a Abs. 6 on non-operative entities; it leaves the PEP definition unchanged. ## Key divergences AMLR Art. 42 requires the three measures for every PEP. Swiss law applies higher-risk status automatically only to foreign PEPs and close associates (Art. 13 Abs. 3 Bst. a-b); domestic, intergovernmental-organisation and sports-federation PEPs and close associates are higher-risk only with a further risk criterion (Abs. 4 Bst. a-e) - one of the clearest CH/EU gaps in the chapter. Switzerland reaches wider on one point: GwG Art. 2a Abs. 1 Bst. c brings sports-federation officials into the PEP definition (Abs. 5: the IOC and its recognised federations) - Switzerland hosts FIFA, UEFA and the IOC. GwV-FINMA Art. 13 Abs. 4 Bst. d does not create this category, only assigns the further-criterion treatment (Bst. e: close associates). AMLR has no sports-federation category. Structurally, Art. 42 names three duties directly; Art. 13 only classifies risk, consequences elsewhere. Art. 19 Abs. 1 Bst. a assigns senior-management approval to Art. 13 Abs. 3 and Abs. 4 Bst. a-c relationships only, omitting the sports-federation limbs Bst. d-e. Art. 15 supplies source-of-wealth/funds clarifications circumstantially. Duration diverges: Art. 2a Abs. 4 ends domestic-PEP status 18 months after leaving office, no limit for foreign/intergovernmental-organisation PEPs; AMLR Art. 45(2) requires not less than 12 months, no distinction by category. ## Effective dates The AMLR applies from 10 July 2027, which is also the deadline for the AMLA guidelines under Art. 42(2). The 2025 GwG revision, which adds Art. 2a Abs. 6 but leaves the politically-exposed-person definition unchanged, is in force from 1 October 2026. See [[Effective-dates timeline]]. ## Further connections *These links come from an article-by-article comparison of the primary texts. They add to the provisions listed at the top of this note and make no equivalence claim.* - [[GwV-FINMA Art. 19 - Senior management responsibility for higher|GwV-FINMA Art. 19]] — Both require senior-level approval to open and continue PEP relationships and heightened ongoing control; the Swiss decision rests with the top management body (or a member) via the Art. 13 classification, and covers domestic and international-organisation PEPs only with a further risk criterion, while AMLR "senior management" can include sufficiently senior officers. *(direct)* - [[GwV-FINMA Art. 18 - Entering higher-risk business relationships|GwV-FINMA Art. 18]] — GwV-FINMA Art. 18 requires approval before opening any higher-risk relationship, which includes PEP relationships; it is a general rule, and for foreign PEPs and for domestic or international-organisation PEPs with a further risk criterion Art. 19 raises the approver to the top management body. *(related)* - [[GwV-FINMA Art. 15 - Additional clarifications for higher risks|GwV-FINMA Art. 15]] — GwV-FINMA Art. 15(2)(b), (e), (g) lists origin of assets, origin of wealth and PEP status among clarifications for higher-risk cases, which include PEP relationships under Art. 13; unlike AMLR Art. 42(1)(b), they are required only "je nach den Umständen" and not specifically for PEPs. *(related)* - [[GwG Art. 6 - Special due diligence obligations (clarification|GwG Art. 6]] — GwG Art. 6 classifies PEP relationships as higher-risk (foreign always, others with a further criterion); AMLR Art. 42 prescribes three specific measures for every PEP. *(related)* ## Authoritative text > [!quote]- Regulation (EU) 2024/1624 (AMLR), Article 42 — English text (EUR-Lex, CELEX 32024R1624) > **Article 42** > *Specific provisions regarding politically exposed persons* > 1. In addition to the customer due diligence measures laid down in Article 20, obliged entities shall apply the following measures with respect to occasional transactions or business relationships with politically exposed persons: > (a) obtain senior management approval for carrying out occasional transactions or for establishing or continuing business relationships with politically exposed persons; > (b) take adequate measures to establish the source of wealth and source of funds that are involved in business relationships or occasional transactions with politically exposed persons; > (c) conduct enhanced, ongoing monitoring of those business relationships. > 2. By 10 July 2027, AMLA shall issue guidelines on the following matters: > (a) the criteria for the identification of persons known to be close associates; > (b) the level of risk associated with a particular category of politically exposed person, family member or person known to be a close associate, including guidance on how such risks are to be assessed where the person is no longer entrusted with a prominent public function for the purposes of Article 45. ## Sources - AMLR Art. 42 — CELEX 32024R1624 - AMLR Art. 45 — CELEX 32024R1624 - AMLR Art. 34 — CELEX 32024R1624 - GwG SR 955.0, Art. 2a - GwG (revision in force 1.10.2026), Art. 2a Abs. 6 - GwV-FINMA SR 955.033.0, Art. 13 - GwV-FINMA SR 955.033.0, Art. 19 - GwV-FINMA SR 955.033.0, Art. 15