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The sale of gift cards and prepaid cards is a common business model, particularly for kiosks and other retailers in Switzerland. This raises questions regarding the Swiss Anti-Money Laundering Act (AMLA). This blog post explains a recent clarification by the Swiss Financial Market Supervisory Authority (FINMA) and highlights which companies must now take action.
1. Is a gift card a means of payment under the AMLA?
The AMLA aims to prevent the use of the financial system for criminal purposes. Under Art.2 Para. 3(b) AMLA , financial intermediaries include persons who issue or manage means of payment.
A crucial question is whether a prepaid card qualifies as a means of payment. The answer depends on the so-called "party relationship":
- Two-party relationship (not subject to AMLA): A card can only be used for payment at its issuer. Classic examples are vouchers from well-known goods or services providers such as Apple or Netflix, which are available from retailers. In this case, the voucher issuer is always the seller of the goods or services or belongs to the same group of companies.
- Three-party relationship (subject to the AMLA):The card serves
as a means of payment with both the issuer and third-party
acceptance points. This structure, seen in systems such as
Paysafecard or Aplauz, constitutes financial intermediation because
the card issuer is not identical to all the acceptance
points.
2. FINMA'S new practice: Distributors now also in focus
FINMA did not publish its new practice directly but instead instructed the self-regulatory organisations (SROs) to inform their members, as seen in the in the Financial Services Standards Association's (VQF) newsletter of 12 November 2025. This unusual approach makes it crucial to actively inform those potentially affected.
Previously, the AMLA primarily focused on issuers of means of payment and prepaid cards in a three-party relationship. Now, not only issuers but also distributors of such means of payment are considered financial intermediaries under the AMLA.
A distributor is a person who provides end customers with access to the payment system and has direct customer contact. This change means that all retailers, kiosks, and online shops in Switzerland offering prepaid cards from third-party providers, whether physically or electronically, now fall under this definition.
Alternatively, distributors can act as direct representatives of the issuer. This requires them to qualify as 'auxiliary persons' under the Anti-Money Laundering Ordinance (Art.2 Para. 2(b) AMLO). This means that issuers may only use such distributors if the issuer has selected trained and monitored them and if the act exclusively for and are contractually bound to that single provider.
This stricter practise targets the known potential for misuse of prepaid cards. Such cards are sometimes used for fraudulent activities and to conceal cash flows due to the high degree of anonymity they offer. It remains to be seen whether this new obligation for distributors will effectively prevent money laundering.
3. Action required by the end of 2025 for issuers and distributors of means of payment
Companies distributing prepaid cards in a three-party relationship, which are not affiliated with a self-regulatory organisation (SRO) as financial intermediaries must take action. To continue distributing gift cards or payment cards in such a relationship, they must generally apply for membership in a recognised SRO by 31 December 2025 at the latest or risk fines and administrative measures.
Consequently, both issuers and distributors of prepaid instruments and vouchers must clarify their future distribution structure to comply with FINMA's new practise. It remains to be seen whether the additional administrative burden for distributors is proportionate to the economic benefits of selling these prepaid cards.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
