Worldwide investments in CLUSTER MUNITIONS
report-worldwide_investments_cluster_munitions-2016
report-worldwide_investments_cluster_munitions-2016
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and transfer of cluster munitions. Furthermore, violations of the prohibitions on assistance with these<br />
banned activities will be sanctioned with three to five years. 701 However, the Penal Code does not <strong>in</strong>clude<br />
a specific reference to f<strong>in</strong>anc<strong>in</strong>g or advertis<strong>in</strong>g cluster munitions. It would therefore appear that<br />
impos<strong>in</strong>g crim<strong>in</strong>al penalties for violat<strong>in</strong>g the prohibition on f<strong>in</strong>anc<strong>in</strong>g and advertis<strong>in</strong>g cluster<br />
munitions is not a possibility. 702<br />
– The law does not provide for supervision or monitor<strong>in</strong>g tools. The implementation order will have<br />
to specify the enforcement of the prohibition on f<strong>in</strong>anc<strong>in</strong>g and advertis<strong>in</strong>g and is of major importance<br />
for the implementation and scope of the law.<br />
2.3.10 Switzerland<br />
BACKGROUND<br />
The Swiss Confederation signed the Convention on Cluster Munitions on 3 December 2008 and ratified it<br />
on 17 July 2012. 703 On 16 March 2012 both Chambers of the Swiss parliament had accepted the ratification<br />
legislation. 704 In the same session the Parliament approved a revision <strong>in</strong> the Federal Law on War Material that<br />
would <strong>in</strong>corporate a prohibition on cluster munitions and anti-personnel m<strong>in</strong>es with the same provisions<br />
which entered <strong>in</strong>to force on 1 February 2013. 705 Because Switzerland is home to many large f<strong>in</strong>ancial <strong>in</strong>stitutions,<br />
many expect the law to have a major impact on how f<strong>in</strong>ancial markets regard the cluster munitions issue.<br />
LEGISLATION<br />
The prohibition of <strong>in</strong>vestment <strong>in</strong> forbidden war material (<strong>in</strong>clud<strong>in</strong>g cluster munitions) is set out <strong>in</strong> Articles<br />
8b and 8c, deal<strong>in</strong>g with direct and <strong>in</strong>direct <strong>in</strong>vestment respectively.<br />
“Art. 8b Prohibition of direct f<strong>in</strong>anc<strong>in</strong>g<br />
1. The direct f<strong>in</strong>anc<strong>in</strong>g of the development, manufacture or acquisition of prohibited war material is<br />
itself prohibited.<br />
2 . Direct f<strong>in</strong>anc<strong>in</strong>g with<strong>in</strong> the mean<strong>in</strong>g of this Act is the direct grant<strong>in</strong>g of credits, loans or gifts or<br />
comparable f<strong>in</strong>ancial advantages <strong>in</strong> order to pay or advance costs and expenditures that are associated<br />
with the development, manufacture or acquisition of prohibited war material.<br />
Art. 8c Prohibition of <strong>in</strong>direct f<strong>in</strong>anc<strong>in</strong>g<br />
1. The <strong>in</strong>direct f<strong>in</strong>anc<strong>in</strong>g of the development, manufacture or acquisition of prohibited war material is<br />
itself prohibited where the prohibition of direct f<strong>in</strong>anc<strong>in</strong>g is circumvented thereby.<br />
2. Indirect f<strong>in</strong>anc<strong>in</strong>g with<strong>in</strong> the mean<strong>in</strong>g of this Act is:<br />
a. participation <strong>in</strong> companies that develop, manufacture or acquire prohibited war material;<br />
b. the acquisition of debt securities or other <strong>in</strong>vestment products issued by such companies.” L 706<br />
Article 35b of the law stipulates the punishment of offences aga<strong>in</strong>st the prohibition of f<strong>in</strong>anc<strong>in</strong>g.<br />
L Orig<strong>in</strong>al text:<br />
“Art. 8b Interdiction du f<strong>in</strong>ancement direct<br />
1 Il est <strong>in</strong>terdit de f<strong>in</strong>ancer directement le développement, la fabrication ou l’acquisition de matériels de guerre prohibés.<br />
2 Est considéré comme f<strong>in</strong>ancement direct au sens de la présente loi l’octroi direct de crédits, de prêts, de donations ou d’avantages<br />
f<strong>in</strong>anciers comparables en vue de couvrir ou d’avancer les coûts du développement, de la fabrication ou de l’acquisition de matériels de<br />
guerre prohibés ou les frais liés à de telles activités.<br />
Art. 8c Interdiction du f<strong>in</strong>ancement <strong>in</strong>direct<br />
1 Il est <strong>in</strong>terdit de f<strong>in</strong>ancer <strong>in</strong>directement le développement, la fabrication ou l’acquisition de matériels de guerre prohibés si le but<br />
visé est de contourner l’<strong>in</strong>terdiction du f<strong>in</strong>ancement direct.<br />
2 Est considéré comme f<strong>in</strong>ancement <strong>in</strong>direct au sens de la présente loi:<br />
a. la participation à des sociétés qui développent, fabriquent ou acquièrent des matériels de guerre prohibés;<br />
b. l’achat d’obligations ou d’autres produits de placement émis par de telles sociétés.”<br />
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