Money laundering

Money laundering is the process by which proceeds of crime are integrated into the legitimate financial system, concealing their illicit origin. It proceeds in three phases: placement (introducing funds into the financial system), layering (creating complex transaction chains to obscure origins) and integration (reintroducing "clean" funds into the economy). In M&A, anti-money laundering (AML) risk is covered by KYC (Know Your Customer) and AML procedures applicable to financial advisors. In Switzerland, the Anti-Money Laundering Act (AMLA) imposes strict due diligence and reporting obligations on financial intermediaries — including M&A advisors.

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Example: in the acquisition of a Swiss hotel group by a foreign investor, Hectelion conducts a comprehensive KYC review before accepting the mandate: ownership structure, fund origins, ultimate beneficial owners (UBO), PEP screening and adverse media checks. This procedure — mandatory under Swiss AMLA — protects all parties and prevents inadvertent facilitation of money laundering through the transaction.

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Hectelion applies rigorous KYC and AML procedures on every mandate, in compliance with Swiss AMLA and French AML obligations, protecting clients and the integrity of the financial system.