# VSB 20 Art. 64 — Violations of the rules of this code of conduct - **Rubric (DE):** Verletzung der Standesregeln - **Rubric (EN):** Violations of the rules of this code of conduct - **Chapter:** 8. Kapitel — Prüf- und Verfahrensbestimmungen (2. Abschnitt: Sanktionsbestimmungen) - **Scope:** Banks & securities firms (incorporated via [[GwV-FINMA Art. 35 - Identification, controlling person and beneficial|GwV-FINMA Art. 35]]) - **Status:** In force (since 1 January 2020) ## Description Abs. 1: for a violation of the code of conduct, a contractual penalty (*Konventionalstrafe*) of up to ten million francs (CHF 10 million), payable to the SBVg, may be imposed on the bank in default. In setting the penalty, the gravity of the violation, the degree of fault and the bank's financial position are to be given due consideration, and measures imposed by other bodies in the same matter must also be taken into account. The amount is determined in the procedure under Art. 61 and, where applicable, Art. 62. Abs. 2: for violations of Art. 46 to 57, a sanction is imposed only if they were committed intentionally (*vorsätzlich*). Abs. 3: after covering any deficit in the cost accounting, the SBVg applies the contractual penalties to a charitable purpose that it determines. ## Context & interpretation The SBA commentary states that, in setting the penalty under Abs. 1, the degree of fault must be given due consideration and that the type of business relationship concerned is also to be taken into account. It states that Abs. 1 obliges the Aufsichtskommission VSB to take into account measures imposed by other bodies in the same matter. On Abs. 2, it states that only an intentional failure to repeat the due diligence duties (Art. 46) and an intentional violation of the provisions on the prohibition of active assistance to flight of capital and tax evasion and similar acts (Art. 47 to 57) are punishable, and that this is a clarification and not a change. ## FATF - [[FATF R.35 - Sanctions|FATF R.35]] — related: provides for a contractual penalty (up to CHF 10 million) on a bank that violates the code of conduct; R.35 concerns sanctions for failure to comply with AML/CFT requirements. ## Swiss counterparts - [[VSB 20 Art. 46 - Repetition in case of doubt|VSB 20 Art. 46]] — first provision of the range Art. 46 to 57 for which Abs. 2 requires intent. - [[VSB 20 Art. 47 - Flight of capital|VSB 20 Art. 47]] — start of the provisions on flight of capital and tax evasion (Art. 47 to 57), covered by Abs. 2. ## Related VSB articles - [[VSB 20 Art. 48 - Definition of flight of capital|VSB 20 Art. 48]] — referred to in the article text - [[VSB 20 Art. 49 - Transfers of capital abroad|VSB 20 Art. 49]] — referred to in the article text - [[VSB 20 Art. 50 - Forms of active assistance|VSB 20 Art. 50]] — referred to in the article text - [[VSB 20 Art. 51 - Visits to clients abroad|VSB 20 Art. 51]] — referred to in the article text - [[VSB 20 Art. 52 - Receipt of assets in Switzerland|VSB 20 Art. 52]] — referred to in the article text - [[VSB 20 Art. 53 - Tax evasion and similar acts|VSB 20 Art. 53]] — referred to in the article text - [[VSB 20 Art. 54 - Incomplete or misleading attestations|VSB 20 Art. 54]] — referred to in the article text - [[VSB 20 Art. 55 - Special-purpose and amended attestations|VSB 20 Art. 55]] — referred to in the article text - [[VSB 20 Art. 56 - Incomplete attestations defined|VSB 20 Art. 56]] — referred to in the article text - [[VSB 20 Art. 57 - Misleading attestations defined|VSB 20 Art. 57]] — referred to in the article text - [[VSB 20 Art. 61 - Sanctions procedure|VSB 20 Art. 61]] — referred to in the article text - [[VSB 20 Art. 62 - Abbreviated procedure|VSB 20 Art. 62]] — referred to in the article text ## Part of - [[VSB 20]] ## Sources - VSB 20 (Vereinbarung vom 13. Juni 2018, in force 1.1.2020), Art. 64 - SBVg Kommentar zur VSB 20 (2020), Art. 64