Worldwide investments in CLUSTER MUNITIONS

and transfer of cluster munitions. Furthermore, violations of the prohibitions on assistance with these
banned activities will be sanctioned with three to five years. 701 However, the Penal Code does not include
a specific reference to financing or advertising cluster munitions. It would therefore appear that
imposing criminal penalties for violating the prohibition on financing and advertising cluster
munitions is not a possibility. 702
– The law does not provide for supervision or monitoring tools. The implementation order will have
to specify the enforcement of the prohibition on financing and advertising and is of major importance
for the implementation and scope of the law.
2.3.10 Switzerland
BACKGROUND
The Swiss Confederation signed the Convention on Cluster Munitions on 3 December 2008 and ratified it
on 17 July 2012. 703 On 16 March 2012 both Chambers of the Swiss parliament had accepted the ratification
legislation. 704 In the same session the Parliament approved a revision in the Federal Law on War Material that
would incorporate a prohibition on cluster munitions and anti-personnel mines with the same provisions
which entered into force on 1 February 2013. 705 Because Switzerland is home to many large financial institutions,
many expect the law to have a major impact on how financial markets regard the cluster munitions issue.
LEGISLATION
The prohibition of investment in forbidden war material (including cluster munitions) is set out in Articles
8b and 8c, dealing with direct and indirect investment respectively.
“Art. 8b Prohibition of direct financing
1. The direct financing of the development, manufacture or acquisition of prohibited war material is
itself prohibited.
2 . Direct financing within the meaning of this Act is the direct granting of credits, loans or gifts or
comparable financial advantages in order to pay or advance costs and expenditures that are associated
with the development, manufacture or acquisition of prohibited war material.
Art. 8c Prohibition of indirect financing
1. The indirect financing of the development, manufacture or acquisition of prohibited war material is
itself prohibited where the prohibition of direct financing is circumvented thereby.
2. Indirect financing within the meaning of this Act is:
a. participation in companies that develop, manufacture or acquire prohibited war material;
b. the acquisition of debt securities or other investment products issued by such companies.” L 706
Article 35b of the law stipulates the punishment of offences against the prohibition of financing.
L Original text:
“Art. 8b Interdiction du financement direct
1 Il est interdit de financer directement le développement, la fabrication ou l’acquisition de matériels de guerre prohibés.
2 Est considéré comme financement direct au sens de la présente loi l’octroi direct de crédits, de prêts, de donations ou d’avantages
financiers comparables en vue de couvrir ou d’avancer les coûts du développement, de la fabrication ou de l’acquisition de matériels de
guerre prohibés ou les frais liés à de telles activités.
Art. 8c Interdiction du financement indirect
1 Il est interdit de financer indirectement le développement, la fabrication ou l’acquisition de matériels de guerre prohibés si le but
visé est de contourner l’interdiction du financement direct.
2 Est considéré comme financement indirect au sens de la présente loi:
a. la participation à des sociétés qui développent, fabriquent ou acquièrent des matériels de guerre prohibés;
b. l’achat d’obligations ou d’autres produits de placement émis par de telles sociétés.”
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