The Law Library of Congress, Global Legal Research Center

(202) 707-6462 (phone) • (866) 550-0442 (fax) • law@loc.gov • http://www.law.gov

Laws Prohibiting Investments in 

Controversial Weapons

Belgium • Ireland • Italy • Liechtenstein • 

Luxembourg • Netherlands • Spain • Switzerland

November 2016
This report is provided for reference purposes only. 

It does not constitute legal advice and does not represent the official 

opinion of the United States Government. The information provided 

reflects research undertaken as of the date of writing. 

It has not been updated.
Contents

Comparative Summary ....................................................................................................................1 

Belgium ............................................................................................................................................3 

Ireland ..............................................................................................................................................5 

Italy ..................................................................................................................................................9 

Liechtenstein ..................................................................................................................................10 

Luxembourg ...................................................................................................................................11 

Netherlands ....................................................................................................................................13 

Spain ..............................................................................................................................................15 

Switzerland ....................................................................................................................................18 
The Law Library of Congress 1

Comparative Summary

Luis Acosta 

Chief, Foreign, Comparative, and International Law Division II 

This report describes the laws of eight European countries—Belgium, Ireland, Italy, 

Liechtenstein, Luxembourg, the Netherlands, Spain, and Switzerland—that prohibit investment 

in certain controversial weapons. 

Controversial weapons are those that are either prohibited under international conventions or are 

deemed particularly controversial because of their humanitarian impact.1 They include weapons 

of mass destruction such as nuclear, chemical and biological weapons, and weapons that fail to 

discriminate between civilians or combatants or cause disproportionate harm, such as cluster 

munitions or anti-personnel mines.2 

International conventions that regulate or prohibit controversial weapons include those covering 

nuclear weapons,3 chemical weapons,4 biological weapons,5 cluster munitions,6 anti-personnel 

mines,7

 and inhumane conventional weapons.

8

 One of these conventions, the Convention on 

Cluster Munitions, has language that has been widely interpreted as requiring States Parties to 

1

 ETHIX SRI ADVISORS, DEFINING CONTROVERSIAL WEAPONS FOR EUROPEAN INSTITUTIONAL INVESTORS 4 (Mar. 

2011), http://www.beama.be/nl/duurzame-icbs/actualiteit/Ehix SRI Advisor - Defining Controversial Weapons for 

Investors - 2011 03.pdf, archived at https://perma.cc/N6PX-M7VP. 

2 Id. 

3 Treaty on the Non-Proliferation of Nuclear Weapons, July 1, 1968, 729 U.N.T.S. 168, https://treaties.un.org/ 

doc/Publication/UNTS/Volume%20729/volume-729-I-10485-English.pdf, archived at https://perma.cc/3NFECZWM. 

4 Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on 

their Destruction, Jan. 13, 1993, 1974 U.N.T.S. 45, https://treaties.un.org/doc/Publication/UNTS/Volume%201974/ 

v1974.pdf, archived at https://perma.cc/Z9L9-VLLR. 

5 Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and 

Toxin Weapons and on Their Destruction, 1015 U.N.T.S. 163, https://treaties.un.org/doc/publication/UNTS/ 

Volume%201015/v1015.pdf, archived at https://perma.cc/4T5F-E4HX. 

6 Convention on Cluster Munitions, Oct. 30, 2008, 2688 U.N.T.S. 39, https://treaties.un.org/doc/Publication/ 

CTC/26-6.pdf, archived at https://perma.cc/9L93-Z4VQ. 

7 Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on 

their Destruction, Sept. 18, 1997, 2056 U.N.T.S. 211, https://treaties.un.org/doc/Publication/UNTS/ 

Volume%202056/v2056.pdf, archived at https://perma.cc/75E5-HNT5. 

8 Convention on Prohibitions or Restrictions on the Use of Certain Conventional Weapons which May Be Deemed 

to Be Excessively Injurious or to Have Indiscriminate Effects, Oct. 10, 1980, 1342 U.N.T.S. 137, https://treaties.un. 

org/doc/Publication/UNTS/Volume%201342/v1342.pdf, archived at https://perma.cc/R46E-ZKJT. Protocols to this 

Convention cover non-detectable fragments; mines, booby-traps, and similar devices; incendiary weapons; blinding 

laser weapons; and explosive remnants of war. Convention on Prohibitions or Restrictions on the Use of Certain 

Conventional Weapons which May Be Deemed to Be Excessively Injurious or to Have Indiscriminate Effects, 

UNITED NATIONS OFFICE FOR DISARMAMENT AFFAIRS, http://disarmament.un.org/treaties/t/ccwc (last visited Nov. 

15, 2016), archived at https://perma.cc/D2SZ-5STF. 
Laws Prohibiting Investments in Controversial Weapons: Comparative Summary 

The Law Library of Congress 2

prohibit investment in producing such weapons.

9

 All of the countries surveyed in this report 

have enacted legislation on investment in production in cluster munitions. In addition to these 

countries surveyed here that have enacted legislation, many other States Parties to the Cluster 

Munitions Convention have issued ministerial or interpretive statements to the effect that 

investment in production of cluster munitions is prohibited by the Convention.10

In addition to prohibiting investments in cluster munitions, some of the surveyed countries 

prohibit investment in other weapons. Switzerland and Liechtenstein prohibit investment in 

nuclear, biological, or chemical weapons, anti-personnel missiles, and cluster munitions. 

Ireland’s and Spain’s prohibitions cover cluster munitions, explosive bomblets, and antipersonnel mines. Belgium’s prohibition covers anti-personnel mines, cluster munitions, and

munitions or armor plating containing uranium. Luxembourg and Italy currently prohibit 

investment in cluster munitions, but pending legislation would extend prohibitions to antipersonnel mines. 

Most of the surveyed countries prohibit both public and private investment in prohibited 

weapons, but Ireland’s legislation only covers investment by public entities. 

Some of the surveys also provide information on the types of prohibited investment activity, the 

penalties for violations, lists of companies affected, governmental bodies responsible for 

overseeing the legislation, and additional relevant information that was located. 

No principles were identified within the present international law framework that displaces the 

authority of national governments to regulate investment services and activities within their 

jurisdictions in areas implicating humanitarian concerns. Likewise, no North Atlantic Treaty 

Organization (NATO) treaty commitments were found that obligate NATO members to permit 

investing in weapons they consider contrary to international humanitarian law. Article 5 of the 

NATO Charter obligates member states to assist with collective defense in the event of armed 

attack of another member state, but it requires only that each party take “such action as it deems 

necessary” in such circumstances, permitting members to determine their own forms of 

participation in collective defense.11 

9 Convention on Cluster Munitions art. 1(1)(c) (“Each Party undertakes never under any circumstances to: . . . (c) 

Assist [or] encourage . . . anyone to engage in any activity prohibited to any State Party to this Convention.”). 

Advocates argue that financing the production of cluster munitions constitutes assistance or encouragement. ROOS 

BOER ET AL., WORLDWIDE INVESTMENTS IN CLUSTER MUNITIONS: A SHARED RESPONSIBILITY 10 (June 2016), 

https://www.paxforpeace.nl/media/files/worldwide-investments-in-cluster-munitions-pax-june-2016.pdf, archived at

https://perma.cc/4957-GCN6. 

10 BOER ET AL., supra note 9, at 209–16 (listing twenty-eight jurisdictions that have issued statements). 

11 North Atlantic Treaty art. 5, Apr. 4, 1949, 63 Stat. 2241, 34 U.N.T.S. 243, available at https://www.loc.gov/ 

law/help/us-treaties/bevans/m-ust000004-0828.pdf, archived at https://perma.cc/PAN3-5GM9. 
The Law Library of Congress 3 

Belgium 

Nicolas Boring 

Foreign Law Specialist

I. Law Prohibiting the Financing of Prohibited Weapons

Belgium adopted a law regulating economic activities related to weapons, commonly referred to 

as the Law on Weapons (Loi sur les Armes), in 2006.1 This Law was initially silent on the topic 

of financial involvement in companies that manufacture prohibited weapons, but it was amended 

in 2007 to prohibit investment in, or the financing of, any company involved in the sale or use of 

certain prohibited ammunition and war materiel such as anti-personnel mines, cluster munitions, 

and depleted uranium munitions and armor.

2

Engaging in the activities prohibited by the Law on Weapons is punishable by a jail sentence of 

between one month and five years, and/or a fine of between €100 (about US$111) and €25,000 

(approximately US$27,747).3 

II. Prohibited Investments

Activities that would make a company subject to this prohibition include the “manufacture, use, 

repair, exhibition for purpose of selling, sale, distribution, import or export, warehousing or 

transport of anti-personnel mines, cluster munitions, and/or inert munitions or armor plating 

containing depleted uranium or any other type of industrial uranium.”4 The Law provides that 

the Belgian government is to publish a list of three types of companies: (a) those that engage in 

the prohibited activities, (b) those that own more than 50% of the shares in companies that 

engage in these activities, and (c) collective investment organizations (organismes de placement 

collectif) that own financial instruments of a company listed under criterion (a) or (b).5 

The Law on Weapons prohibits any financial support for a company on this list, including bank 

loans and bank guarantees, and the acquisition of financial instruments (such as shares) issued by 

1 Loi du 8 juin 2006 réglant des activités économiques et individuelles avec des armes [Law of 8 June 2006 

Regulating Individual and Economic Activities with Weapons] (as amended to May 13, 2016), http://www.ejustice. 

just.fgov.be/cgi_loi/loi_a.pl?language=fr&caller=list&cn=2006060830&la=f&fromtab=loi&sql=dt=%27loi%27&tri

=dd+as+rank&rech=1&numero=1, archived at https://perma.cc/X6BL-F8K8. 

2 Id. art. 8; Loi du 20 mars 2007 interdisant le financement de la fabrication, de l’utilisation ou de la détention de 

mines antipersonnel et de sous-munitions [Law of 20 March 2007 Prohibiting the Financing and Manufacturing, the 

Use or the Possession of Anti-Personnel Mines and Sub-Munitions], http://www.ejustice.just.fgov.be/cgi_loi/ 

change_lg.pl?language=fr&la=F&table_name=loi&cn=2007032048, archived at https://perma.cc/G3G2-F4E2. 

3 Loi du 8 juin 2006, art. 23. 

4 Id. art. 8. 

5 Id.
Laws Prohibiting Investments in Controversial Weapons: Belgium

The Law Library of Congress 4

that company.6 If such financial support was already in place when the Law came into effect, it 

must be withdrawn as much as contractually possible.7 

Although the Belgian government was supposed to publish the list of companies by May 1, 

2008, it had not yet done so as of June 2015,

8 and it still does not appear to have done so as of 

the date of this report. 

In response to a question from a senator in 2008, the Vice-Prime Minister and Minister of 

Finance stated that “the absence of such a public list obviously does not prevent the concrete 

application of the legislation.”9

III. Exemptions

Article 8 of the Law on Weapons does not apply to index funds, defined by the law as

“investment firms whose purpose, as defined by their articles of incorporation or management 

regulations, is to follow the composition of a particular index of stocks or bonds.”10 

Furthermore, the Law on Weapons authorizes the financing of specific projects, even when they 

involve companies engage in the activities prohibited by article 8 of the Law on Weapons, so 

long as the projects have nothing to do with these activities.11

6 Id.

7 Id.

8 Question No. 381, Questions et réponses écrites [Written Questions and Answers], CHAMBRE DES REPRÉSENTANTS 

DE BELGIQUE [BELGIAN HOUSE OF REPRESENTATIVES], QRVA 54 032 (July 6, 2015), p. 37, http://www.lachambre. 

be/QRVA/pdf/54/54K0032.pdf, archived at https://perma.cc/H6JW-MU8G. 

9 Question No. 4-306, Questions Orales [Verbal Questions], SÉNAT DE BELGIQUE [BELGIAN SENATE], Annales, 

Séances plénières [Annals, Plenary Sessions], May 22, 2008, Afternoon Session, No. 4-30, p. 35, https://www. 

senate.be/www/webdriver?MItabObj=pdf&MIcolObj=pdf&MInamObj=pdfid&MItypeObj=application/pdf&MIval

Obj=67109926, archived at https://perma.cc/Q2Q4-LP6Q. 

10 Loi du 8 juin 2006, art. 8. 

11 Id.
The Law Library of Congress 5

Ireland

Clare Feikert-Ahalt 

Senior Foreign Law Specialist

I. Introduction

Ireland was actively involved in the negotiations that resulted in the adoption of the Convention 

on Cluster Munitions.1 Ireland was described as the “driving force behind” the process2 and as 

bearing “a great deal of the responsibility for the successful outcome of the negotiations and the 

strength of the convention.”3

 Ireland signed and ratified the Convention on December 3, 2008.4 

Ireland is also a party to the Anti-Personnel Mine Ban Convention,

5 which it ratified on 

December 3, 1997.6 These treaties have been implemented into Ireland’s national law through 

the Cluster Munitions and Anti-Personnel Mines Act 2008.7 

II. Types of Prohibited Investment and Financing Activity

The Cluster Munitions and Anti-Personnel Mines Act 2008 prohibits the investment of public 

money, either directly or indirectly, in any company involved in the manufacture of prohibited 

munitions or components.8

 Public money is defined in the Act as “moneys provided by the 

Oireachtas out of the Central Fund”;9 thus, the application does not extend to private investors. 

1 Convention on Cluster Munitions, Oct. 30, 2008, 2688 U.N.T.S. 39, https://treaties.un.org/doc/Publication/ 

CTC/26-6.pdf, archived at https://perma.cc/9L93-Z4VQ. 

2

 ROOS BOER ET AL., WORLDWIDE INVESTMENTS IN CLUSTER MUNITIONS: A SHARED RESPONSIBILITY ¶ 2.3.2 (June 

2016), https://www.paxforpeace.nl/media/files/worldwide-investments-in-cluster-munitions-pax-june-2016.pdf, 

archived at https://perma.cc/4957-GCN6. 

3 Ireland Cluster Munition Ban Policy, LANDMINE AND CLUSTER MUNITION MONITOR (Sept. 1, 2013), 

http://archives.the-monitor.org/index.php/cp/display/region_profiles/theme/2717#_ftn4, archived at

https://perma.cc/V8L5-LC99. 

4 Treaties, States Parties and Commentaries, Convention on Cluster Munitions, INT’L COMM. OF THE RED CROSS, 

https://ihl-databases.icrc.org/applic/ihl/ihl.nsf/States.xsp?xp_viewStates=XPages_NORMStatesParties&xp_ 

treatySelected=620 (last visited Nov. 7, 2016), archived at https://perma.cc/3GH4-AGK4. 

5 Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on 

Their Destruction, Sept. 18, 1997, 2056 U.N.T.S. 211, https://treaties.un.org/doc/Publication/UNTS/

Volume%202056/v2056.pdf, archived at https://perma.cc/75E5-HNT5. 

6 Treaties, States Parties and Commentaries, Convention on the Prohibition of the Use, Stockpiling, Production and 

Transfer of Anti-Personnel Mines and on their Destruction, INT’L COMM. OF THE RED CROSS, https://ihl-databases. 

icrc.org/applic/ihl/ihl.nsf/States.xsp?xp_viewStates=XPages_NORMStatesParties&xp_treatySelected=580, archived 

at https://perma.cc/BZL8-X9UT. 

7 Cluster Munitions and Anti-Personnel Mines Act 2008, No. 20 of 2008, http://www.irishstatutebook.ie/eli/ 

2008/act/20/enacted/en/print#sec1, archived at https://perma.cc/6LWK-FGKQ. 

8 Id. § 12.

9 Id. § 11.
Laws Prohibiting Investments in Controversial Weapons: Ireland

The Law Library of Congress 6

A prohibited munition is defined as a “cluster munition, explosive bomblet or antipersonnel mine.”10

When public money is directly invested in a company that is, or later becomes, a company

involved in manufacturing prohibited munitions, the investor must establish that the company 

intends to stop its involvement.

11 If the investor is not satisfied that the company will cease its 

involvement in these activities, it must divest the investment in that company.

12

Indirect investment through collective investment undertakings and investment products are also 

addressed in the Act. Public money may only be invested in these undertakings and products 

where the investor has satisfactorily established that “there is not a significant probability” that 

public money will be invested in a company involved in the manufacture of prohibited 

munitions. In cases where public money is invested in a collective investment undertaking or 

investment product that invests in a covered company, the investor must establish to his or her 

satisfaction that the company intends to stop its involvement. If the investor is not satisfied that 

this criteria can be met the collective investment undertaking or investment product must divest 

itself of the investment in the company involved in the manufacture of prohibited munitions.

13 

Additionally, there must be a significant probability that the collective investment or investment 

product will not invest public money in a munitions company again. The investor also has the 

option of divesting itself of its investment in the collective investment undertaking or investment 

product, provided that all contractual obligations are taken into account.14 

III. Exemptions

The Act does not extend to “contracting derivative financial instruments based on a financial 

index,”15 and this exemption has been described as weakening the law because the investments 

are permitted even when they contain instruments connected to companies involved in prohibited 

munitions.16 As noted above, the Act only applies to the investment of public money, so private 

investors continue to be free to invest in companies that would otherwise be prohibited under 

the Act.

10 Id.

11 “Investor” is defined in section 11 of the 2008 Act as “a person or body responsible for the investment of public 

moneys owned by a Minister of the Government.”

12 Id. § 13, http://www.irishstatutebook.ie/eli/2008/act/20/enacted/en/print#sec1, archived at https://perma.cc/ 

6LWK-FGKQ. 

13 Id. § 14.

14 Id. 

15 Id. § 15.

16 BOER ET AL., supra note 2, ¶ 2.3.2. 
Laws Prohibiting Investments in Controversial Weapons: Ireland

The Law Library of Congress 7

IV. Penalties

As noted, the Act’s prohibitions on investment only extend to public funds. The Act’s penalty 

provisions are contained in sections 16–19 and address parts of the Act other than those of public 

investment, which are matters of public administration.

V. Oversight

The Act does not specify a specific government branch or department that is responsible for 

overseeing that its provisions are followed. Given that an “investor” covered by the act is 

defined as a “person or body responsible for the investment of public moneys owned by a 

Minister of the Government,”17 it appears that oversight would be within the government 

department that oversees the investor. For example, the Ireland Strategic Investment Fund is 

overseen by the National Treasury Management Agency.18 

The government department in charge of Ireland’s foreign affairs is the Department of Foreign 

Affairs and Trade.19 The parliamentary committee that would likely be responsible for 

considering amendments to the Act would be the Joint Committee on Foreign Affairs and Trade, 

and Defence.20 

VI. Government’s List of Companies Affected by the Legislation

In the months prior to the enactment of the Cluster Munitions and Anti-Personnel Mines Act the 

Irish government requested that the Irish National Pension Reserve Fund withdraw €27 million 

(approximately US$30 million) from six international companies linked to the manufacture of 

cluster munitions.21 The Irish National Pension Reserve Fund complied and disinvested its funds 

from these companies.22 The Irish government later transferred all monies from this pension 

fund to the Ireland Strategic Investment Fund (ISIF)23 in 2014 after the government decided that 

it wanted to change the pension fund into an investment fund, to “support economic activity 

and employment.”24

17 Cluster Munitions and Anti-Personnel Mines Act 2008, No. 20 of 2008, § 11.

18 Home, NATIONAL TREASURY MANAGEMENT AGENCY, http://www.ntma.ie (last visited Nov. 1, 2016), archived at

https://perma.cc/RVP8-85WF. 

19 Our Role and Policies, DEPARTMENT OF FOREIGN AFFAIRS AND TRADE, https://www.dfa.ie/our-role-policies/ (last 

visited Nov. 7, 2016), archived at https://perma.cc/EM42-NJW8. 

20 Joint Committee on Foreign Affairs and Trade, and Defence, HOUSES OF THE OIREACHTAS, http://www. 

oireachtas.ie/parliament/oireachtasbusiness/committees_list/foreign-affairs-trade-defence/ (last visited 

Nov. 7, 2016), archived at https://perma.cc/BB6H-89T5.

21 Ireland, Cluster Munition Ban Policy, LANDMINE & CLUSTER MUNITION MONITOR (Aug. 5, 2015), 

http://www.the-monitor.org/en-gb/reports/2015/ireland/cluster-munition-ban-policy.aspx, archived at

https://perma.cc/RR38-TST3. 

22 BOER ET AL., supra note 2, ¶ 2.3.2. 

23 IRELAND STRATEGIC INVESTMENT FUND, http://www.isif.ie, archived at https://perma.cc/2B9S-S3AA. 

24 BOER ET AL., supra note 2, ¶ 2.2.23.
Laws Prohibiting Investments in Controversial Weapons: Ireland

The Law Library of Congress 8

The ISIF has published a list of companies that are excluded from the Fund as mandated by the 

Cluster Munitions and Anti-Personnel Mines Act 2008. The list currently contains nineteen 

companies, but it is kept under review and updated as necessary. The companies listed are: Aryt 

Industries Ltd., Doosan Corporation, Hanwha Corporation, Poongsan Holdings Corporation, 

Poongsan Corporation, Hanwha Techwin Co. Ltd. (previously Samsung Techwin), Orbital ATK 

Inc (previously Alliant Techsystems), Lockheed Martin, L-3 Communications, Raytheon, 

Textron, Aselsan AS, Ashot Ashkelon, China Spacesat China, Aerospace International Holdings, 

Motovilikha Plants JSC, Norinco International Cooperation Ltd., S&T Dynamics Co. Ltd., and

S&T Holdings Co. Ltd.25 The list does not specify the countries that the listed companies 

are from.

25 Cluster Munitions, IRELAND STRATEGIC INVESTMENT FUND, http://www.isif.ie/how-we-invest/responsibleinvestment/cluster-munitions (last visited Nov. 1, 2016), archived at https://perma.cc/X796-4LVZ; see also

NATIONAL TREASURY MANAGEMENT AGENCY, INFORMATION SOUGHT BY THE PUBLIC ACCOUNTS COMMITTEE 

FOLLOWING THE NTMA’S APPEARANCE BEFORE THE COMMITTEE App. E (July 21, 2016), http://www.oireachtas.ie/ 

parliament/media/committees/pac/correspondence/2016-meeting1832909/PAC32-70-B-----Conor-OKelly-NTMAFollow-up.pdf, archived at https://perma.cc/7ZZP-6DV8 (providing ISINs for the listed companies). 
The Law Library of Congress 9 

Italy 

Dante Figueroa 

Senior Legal Information Analyst 

I. Legislation Prohibiting Certain Types of Investments Related to

Cluster Munitions

In 2011 Italy adopted Law No. 95 ratifying and implementing the 2008 Oslo Convention on 

Cluster Munitions.1 Law No. 95 of 2011 bans the provision of financial assistance to activities 

related to the development, production, acquisition, storage, retention, or transfer of cluster 

munitions. In particular, Law No. 95 of 2011 provides that, 

[w]hoever uses . . . develops, produces, acquires in any way, stores, retains, or transfers,

directly and indirectly, cluster munitions or parts thereof, or financially assists,

encourages or induces others to engage in such activity, is punished with imprisonment

from three to twelve years and a fine of 258,228 Euro to 516,456 Euro [approximately

US$283,402 to 572,771].2

II. Proposed Expansion of Existing Legislation

On October 6, 2016, an Italian Senate commission unanimously approved Bill No. 57,3 which 

would prohibit all types of financial support to companies that operate in any phase of the 

production and commercialization of landmines and cluster munitions and submunitions, as well 

as those companies that engage in research into, and the manufacture, sale and transfer, 

exportation, importation, and possession of, such weapons.4 In order to become law, Bill No. 57 

would have to be approved by the entire Senate, then by the Chamber of Deputies, and 

promulgated by the President of the Republic.5

1 Legge 14 giugno 2011, n. 95 Ratifica ed esecuzione della Convenzione di Oslo sulla messa al bando delle 

munizioni a grappolo, fatta a Dublino il 30 maggio 2008, nonche’ norme di adeguamento dell’ordinamento interno

[Law No. 95 of June 14, 2011, Ratifying and Implementing the Oslo Convention on Cluster Munitions, made in 

Dublin on May 30, 2008, as well as Implementing Provisions] art. 7(1), GAZZETTA UFFICIALE [G.U.] No. 153, July 

4, 2001, http://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:legge:2011-06-14;95, archived at https://perma.cc/ 

JZX3-8MKP. 

2 Translation provided at Worldwide Investments in Cluster Munitions: A Shared Responsibility, PAX (June 2016), 

https://www.paxforpeace.nl/media/files/worldwide-investments-in-cluster-munitions-pax-june-2016.pdf, archived at 

https://perma.cc/U6YU-9257. 

3 Disegno di legge [Bill] No. 57, XVII Legislatura [Legislature], Senato della Repubblica [Senate of the Republic], 

http://www.senato.it/leg/17/BGT/Schede/FascicoloSchedeDDL/ebook/39361.pdf, archived at https://perma.cc/ 

3BT8-QQMY. 

4 Press Release, Mauro Maria Marino, President of the Permanent Commission on Finances and the Treasury, Mine 

antiuomo, arriva il sì della Commissione [Landmines, The Yes of the Commission Arrives] (Oct. 6, 2016), 

http://mauromariamarino.it/mine-antiuomo-arriva-si-della-commissione, archived at https://perma.cc/FK9W-3NRD. 

5 Iter Legislativo: come si approvano le leggi in Italia? [Legislative Path: How Laws Are Approved in Italy], 

PORTAL DIRITTO (Aug. 19, 2005), http://www.portaldiritto.com/iter-legislativo.htm, archived at https://perma.cc/ 

3BZK-JYTH. 
The Law Library of Congress 10

Liechtenstein

Jenny Gesley

Foreign Law Specialist

The tax treaty that is in force between Switzerland and Liechtenstein makes certain Swiss laws 

applicable in Liechtenstein. According to a proclamation of October 25, 2016, the Swiss War 

Material Act,1 with the exception of a few provisions,

2 is one of the laws applicable in 

Liechtenstein.3 Liechtenstein therefore also prohibits the direct financing of the development, 

manufacture, or acquisition of prohibited war material, as well as indirect financing if the 

indirect financing is used to circumvent the prohibition on direct financing.

4

 Anyone who 

intentionally violates the prohibition of financing and cannot claim an exemption is liable to a 

custodial sentence not exceeding five years.

5

The government of Liechtenstein is designated as the licensing authority for the War Material 

Act.6

 No governmental lists could be located that provide for covered companies. 

1 Bundesgesetz über das Kriegsmaterial (Kriegsmaterialgesetz, KMG) [War Material Act], Dec. 13, 1996, 

SYSTEMATISCHE RECHTSSAMMLUNG [SR] [SYSTEMATIC COLLECTION OF LAWS] 514.51, https://www.admin.ch/opc/ 

de/classified-compilation/19960753/201302010000/514.51.pdf, archived at http://perma.cc/2E49-3K33, unofficial 

English translation available at https://www.admin.ch/opc/en/classified-compilation/19960753/201302010000/514. 

51.pdf, archived at http://perma.cc/G49X-BDXT.

2 Liechtenstein does not apply articles 4, 16a, 16b; article 30, para. 2, sentence 1; or article 32 of the Swiss War 

Material Act, nor the provisions regarding brokerage, transfer of intellectual property, including know-how, or the 

granting of rights thereto.

3 Kundmachung vom 25. Oktober 2016 der aufgrund des Zollvertrages im Fürstentum Liechtenstein anwendbaren 

schweizerischen Rechtsvorschriften (Anlagen I und II) [Proclamation of October 25, 2016, Concerning the Swiss 

Laws which Are Applicable in the Principality of Liechtenstein in Accordance With the Tax Treaty], 

LIECHTENSTEINISCHES LANDESGESETZBLATT NUMMER [LIECHTENSTEIN LGBL.-NR.] [LIECHTENSTEIN OFFICIAL 

LAW GAZETTE NO.] 2016.329, https://www.gesetze.li/lilexprod/ifshowpdf.jsp?lgblid=2016329000&version=1& 

signed=n&tablesel=0, archived at http://perma.cc/DQ7S-EJGP.

4 Gesetz vom 10. Dezember 2008 über die Vermittlung von und den Handel mit Kriegsmaterial 

(Kriegsmaterialgesetz; KMG) [War Material Act], LIECHTENSTEIN LGBL.-NR. 2009.039, as amended, arts. 7b, 7c, 

https://www.gesetze.li/lilexprod/ifshowpdf.jsp?lgblid=2009039000&version=3&signed=n&tablesel=0, archived at 

http://perma.cc/9UDD-ZV6S. 

5 Id. art. 29b.

6 Verordnung über das Kriegsmaterial (Kriegsmaterialverordnung, KMV) [War Material Ordinance], 

LIECHTENSTEIN LGBL.-NR. 2009.073, as amended, art. 9, https://www.gesetze.li/lilexprod/ifshowpdf.jsp?lgblid=200 

9073000&version=2&signed=n&tablesel=0, archived at http://perma.cc/LR8F-N9UL.
The Law Library of Congress 11 

Luxembourg 

Nicolas Boring 

Foreign Law Specialist

I. Law Prohibiting the Financing of Cluster Munitions

Luxembourg prohibited the financing of cluster munitions in 2009, in the law ratifying the 

Convention on Cluster Munitions.1 The law simply provides that “it is forbidden for any natural 

or legal person to knowingly finance cluster munition weapons or explosive submunitions.”2 

Anyone guilty of financing cluster munitions or explosive submunitions may face between five 

and ten years of jail time, and/or a fine of between €25,000 (about US$27,840) and €1,000,000 

(approximately US$1,113,520).3

II. An Incomplete Law

This law raises several questions. What qualifies as “financing”? Does indirect investment 

qualify? How much due diligence would an investor be expected to conduct in order to avoid 

“knowingly” financing cluster munitions? The government of Luxembourg does not appear to 

have issued any implementing orders or regulations, or any sort of official instructions or

explanations, that would answer such questions. Furthermore, the law does not provide for any 

supervision or monitoring mechanism.4

Luxembourg’s General Pension Common Compensation Fund (Fonds de compensation commun 

au régime général de pension) publishes a list of companies that are excluded from its investment 

portfolios, and several companies are on this list due to involvement in cluster munitions.5

However, this list does not appear to have any binding force outside of the Compensation Fund 

itself. Furthermore, many companies on that list are not involved with cluster munitions, but are 

listed because of other practices deemed unethical by the Compensation Fund, even if those 

practices are not necessarily illegal.

1 Loi du 4 juin 2009 portant approbation de la Convention sur les armes à sous-munitions, ouverte à la signature à 

Oslo le 3 décembre 2008 [Law of 4 June 2009 Approving the Convention on Cluster Munitions, Open for Signature 

in Oslo on 3 December 2008], http://www.legilux.public.lu/leg/a/archives/2009/0147/a147.pdf#page=2, archived at 

https://perma.cc/PSQ7-6595. 

2 Id. art. 3 (all translations by author). 

3 Id. art. 4. 

4

 ROOS BOER, HESTER BRINK, SUZANNE OOSTERWIJK & MICHEL RIEMERSMA, WORLDWIDE INVESTMENT IN

CLUSTER MUNITIONS, A SHARED RESPONSIBILITY 199 (PAX, June 2016 Update), available at https://www.paxfor 

peace.nl/media/files/worldwide-investments-in-cluster-munitions-pax-june-2016.pdf, archived at

https://perma.cc/STD9-33V4. 

5 FDC Exclusion List, FONDS DE COMPENSATION COMMUN AU RÉGIME GÉNÉRAL DE PENSION [GENERAL PENSION 

COMMON COMPENSATION FUND] (May 15, 2016), http://www.fdc.lu/fileadmin/file/fdc/Liste_d_exclusion_ 

20160515.pdf#pageMode=bookmarks, archived at https://perma.cc/RBN8-WCA4. 
Laws Prohibiting Investments in Controversial Weapons: Luxembourg

The Law Library of Congress 12 

III. Potential Extension of Prohibition to Other Types of Controversial Weapons

Luxembourg may, in the future, adopt legislation banning investments in antipersonnel mines. 

In March 2016, the Luxembourger Minister of Foreign and European Affairs, Jean Asselborn, 

made a foreign policy declaration before Parliament in which he stated that “the government 

takes very seriously the issues related to the financing of arms trafficking, and is thinking about 

replicating the prohibition on financing cluster bombs in the context of the Convention against 

Anti-personnel Mines, therefore going beyond the text of the Conventions.”6

6 Communiqué [Press Release], Gouvernement [Luxembourger Government] Déclaration sur la politique étrangère 

et européenne de Jean Asselborn à la Chambre des députés [Declaration on Foreign and European Policy by Jean 

Asselborn to the Chamber of Deputies] (Mar. 8, 2016), http://www.gouvernement.lu/5787181/08-asselborndeclaration-chd, archived at https://perma.cc/4WT4-RLQJ. 
The Law Library of Congress 13

Netherlands

Jenny Gesley

Foreign Law Specialist

In January 2013, the Netherlands amended the Market Abuse (Financial Supervision Act) Decree 

to include new obligations for Dutch financial institutions regarding cluster munitions. Financial 

institutions must now take adequate measures to ensure that they do not conduct or commission

transactions for the purpose of acquiring or offering a financial instrument that has been issued 

by a company that produces, sells, or distributes cluster munitions or critical components of 

them, and that they do not provide loans to or acquire nonmarketable holdings in the capital of 

such companies.1 The rules also prohibit indirect investments via parent (holding) companies 

that hold more than 50% of the share capital of prohibited companies.2 The prohibition does not 

apply to clearing institutions.3

There are three exceptions to the prohibition. A financial institution is allowed to execute 

transactions based on an index if less than 5% represent individual companies that are subject to 

the investment prohibition. In addition, the prohibition does not apply to transactions in a 

collective investment scheme if less than 5% of the investments are in individual companies that 

are subject to the investment prohibition. Lastly, investments can be made in clearly described

projects of cluster munition companies insofar as the financing is not used for the manufacture, 

sale, or distribution of cluster munitions.4

The implementation of the law is overseen by the Financial Market Authority (Autoriteit 

Financiële Markten, AFM). The AFM has published “Frequently Asked Questions” on the 

interpretation and monitoring of the prohibition on its website.

5

 In case of a violation of the 

prohibition on investing in or granting loans to prohibited companies, the AFM may impose a 

fine or report the matter to the Public Prosecution Service.6

 The violation of the prohibition is 

1 Besluit van 12 oktober 2006, houdende regels tot uitvoering van diverse bepalingen van hoofdstuk 5.4 van de Wet 

op het financieel toezicht (Besluit marktmisbruik Wft) [Decree of October 12, 2006 Containing Rules Implementing 

Various Provisions of Chapter 5.4 of the Act on Financial Supervision (Market Abuse (Financial Supervision Act) 

Decree), STAATSBLAD VAN HET KONINKRIJK DER NEDERLANDEN [STB.] [OFFICIAL GAZETTE OF THE KINGDOM OF 

THE NETHERLANDS] 2006, No. 510, art. 21a, http://wetten.overheid.nl/BWBR0020417/2014-01-01, archived at

https://perma.cc/WMH9-VRYK. 

2 Id. art. 21a, para. 2.

3 Id. art. 21a, para. 1.

4 Id. art. 21a, para. 3.

5 Frequently Asked Questions – Clustermunitions, AFM, https://www.afm.nl/en/professionals/veelgesteldevragen/clustermunitie-investeringsverbod (last visited Nov. 8, 2016), archived at http://perma.cc/WWQ6-9W9Q. 

6 Wet van 28 september 2006, houdende regels met betrekking tot de financiële markten en het toezicht daarop (Wet 

op het financieel toezicht) [Act of September 28, 2006 on Rules Regarding the Financial Markets and Their 

Supervision (Financial Supervision Act)], STB. 2006, No. 475, art. 1:80, http://wetten.overheid.nl/BWBR002 

0368/2016-09-03, archived at http://perma.cc/37SL-4P3B; Wet van 22 juni 1950, houdende vaststelling van regelen 

voor de opsporing, de vervolging en de berechting van economische delicten [Wet op de economische delicten] 
Laws Prohibiting Investments in Controversial Weapons: Netherlands 

The Law Library of Congress 14

categorized as a “category 2” violation, which carries a fine with a base amount of €500,000 

(around US$553,325) and a maximum of €1 million (around US$1.11 million).

7

 The base 

amount for category 2 and 3 fines is flexible and may be doubled or reduced to zero if the 

seriousness and duration of the offense and/or the degree of culpability of the offender give 

reason to do so.8

The AFM uses an indicative list of prohibited companies for its supervision. The list is updated 

towards the end of each calendar year. It is created at the request of the AFM by a representative 

selection of market parties and interest groups, which meet to agree on the list of companies that 

should be subject to the prohibition.9 The original list of prohibited companies was published by 

the financial sector,10 but updates have not been made publicly available by the AFM. The list 

included the following companies: Aeroteh (Romania), Alliant Techsystems (US), Aryt 

Industries (Israel), Ashot Ashkelon (Israel), Hanwha Corporation (South Korea), Kaman Corp. 

(US), Lockheed Martin Corp. (US), Norinco (China), Poongsan Corporation (South Korea), 

Singapore Technologies Engineering (Singapore), Splav State Research (Russia), and 

Textron (US).11

[Economic Offenses Act], STB. 1950, No. 258, art. 1, http://wetten.overheid.nl/BWBR0002063/2016-10-21, 

archived at http://perma.cc/6UPY-E2QN. 

7 Besluit van 11 juni 2009, houdende regels voor het vaststellen van de op grond van de Wet op het financieel 

toezicht en enige andere wetten op te leggen bestuurlijke boetes (Besluit bestuurlijke boetes financiële sector) 

[Decree of June 11, 2009 on Rules for Determining Administrative Fines on the Basis of the Act on Financial 

Supervision and Other Laws (Decree on Administrative Fines in the Financial Sector)], STB. 2009, No. 329, art. 10, 

http://wetten.overheid.nl/BWBR0026204/2016-07-14, archived at http://perma.cc/8F3F-37QP; Financial 

Supervision Act art. 1:81, para. 2.

8 Decree on Administrative Fines in the Financial Sector art. 2.

9 AFM, supra note 5. 

10 Nieuwsbrief [Newsletter], EUMEDION, CORPORATE GOVERNANCE FORUM, Dec. 2012, at 4, http://www.eumedion. 

nl/nl/public/kennisbank/nieuwsbrieven/2012/nieuwsbrief_2012-12.pdf, archived at http://perma.cc/N3BN-ETWG. 

11 Id. 
The Law Library of Congress 15

Spain

Graciela Rodriguez-Ferrand 

Senior Foreign Law Specialist

I. Introduction

Although Spain has been a producer and stockpiler of cluster munitions, it became a signatory of 

the Convention on Cluster Munitions on December 3, 2008, and ratified the Convention on June 

17, 2009.1

 Spain is also a party to the Anti-Personnel Mine Ban Convention,2 which it signed on 

December 3, 1997, and ratified on January 19, 1999.

3

 Spain currently prohibits the use, 

stockpiling, production, transfer, and financing of such munitions.4

II. Legislation

Law 33/1998, as amended by Law 27/2015, forbids the use, development, production, 

acquisition in any way, stockpiling, conservation, transfer, or export, directly or indirectly, of 

antipersonnel mines, cluster munitions, explosive bomblets, and weapons of similar effect. 

Furthermore, assisting, encouraging, or inducing anyone to participate in any activity prohibited 

by the Convention on Cluster Munitions or its implementing legislation is also banned.5

 

Law 27/2015 added a provision making illegal the financing and advertising of prohibited 

weapons and any of the activities prohibited by the Law.6 The Law does not provide for 

1 Convention on Cluster Munitions, Oct. 30, 2008, 2688 U.N.T.S. 39, available at http://www.clusterconvention. 

org/files/2011/01/Convention-ENG.pdf, archived at https://perma.cc/5RU7-7CUN; Status As At 27-09-17, 

Convention on Cluster Munitions, UNITED NATIONS TREATY COLLECTION, https://treaties.un.org/pages/View 

Details.aspx?src=TREATY&mtdsg_no=XXVI-6&chapter=26&lang=en, archived at https://perma.cc/S4NF-KVGZ. 

2 Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on 

Their Destruction, Sept. 18, 1997, 2056 U.N.T.S. 211, https://treaties.un.org/doc/Publication/UNTS/Volume% 

202056/v2056.pdf, archived at https://perma.cc/75E5-HNT5. 

3 Treaties, States Parties and Commentaries, Convention on the Prohibition of the Use, Stockpiling, Production and 

Transfer of Anti-Personnel Mines and on their Destruction, INT’L COMM. OF THE RED CROSS, https://ihl-databases. 

icrc.org/applic/ihl/ihl.nsf/States.xsp?xp_viewStates=XPages_NORMStatesParties&xp_treatySelected=580, archived 

at https://perma.cc/BZL8-X9UT. 

4 Spain (Archives: 1999–2014), LANDMINE AND CLUSTER MUNITION MONITOR, http://archives.the-monitor.org/ 

index.php/publications/display?act=submit&pqs_year=2009&pqs_type=cm&pqs_report=spain (cluster munitions), 

archived at https://perma.cc/PZW3-83FY; http://archives.the-monitor.org/index.php/cp/display/region_profiles/ 

theme/3875 (mines), archived at https://perma.cc/TXN6-EVNT. 

5 Law 33/1998, Oct. 5, 1998, BOLETÍN OFICIAL DEL ESTADO [B.O.E.], Oct. 6, 1998, as amended by Ley 27/2015, 

July 28, 2015, on the Complete Prohibition of Antipersonnel Mines, Cluster Munitions and Similar Weapons art. 

2.1, B.O.E., July 28, 2015, http://www.boe.es/boe/dias/2015/07/29/pdfs/BOE-A-2015-8471.pdf, archived at

https://perma.cc/4QET-JN6S. 

6 Id.
Laws Prohibiting Investments in Controversial Weapons: Spain

The Law Library of Congress 16

specifics on what types of investments are prohibited, but rather provides for a prohibition in 

general terms.7

III. Implementation

On July 11, 2008, the Spanish government ordered a unilateral moratorium on cluster munitions 

in the Spanish Armed Forces possession and the destruction of such munitions.

8

 In addition, the 

Spanish government assumed the commitment to destroy cluster bombs in the Spanish 

government’s possession by June 2009.9

 In compliance with the moratorium, Instalaza and 

Maxam, Spanish manufacturers of cluster bombs, cancelled their production when Spain signed

the Convention on Cluster Munitions.10 In addition, the agencies of the Spanish government 

responsible for foreign trade were instructed to deny all requests for the export of 

cluster munitions.11

According to an official report by the Ministry of Defense, by the end of 2008, Spain had 

destroyed 4,339 cluster munitions, which constituted over 77% of its stockpile, and completed 

the destruction of cluster munitions in March 2009.12

Spanish financial institutions, such as BBVA and Banco Santander, previously provided 

financing to Spanish companies manufacturing cluster munitions and anti-personnel mines, but 

stopped this practice when the prohibition under Law 27/2015 was enacted, according to 

declarations issued by the banks.13

The Law uses general language and does not provide specific names of the domestic or foreign 

companies affected by the prohibition. 

7 Id. 

8 El Gobierno Aprueba la Moratoria para Destruir las Bombas de Racimo en España, PÚBLICO (July 11, 2008), 

http://especiales.publico.es/hemeroteca/133770/el-gobierno-aprueba-la-moratoria-para-destruir-las-bombas-deracimo-en-espana, archived at https://perma.cc/6NV2-5K8N; Texto del Acuerdo por el que se Dispone una 

Moratoria Unilateral Relativa a las Municiones de Racimo y se Impulsa el Proceso de Firma y Ratificación de la 

Convención sobre Municiones de racimo Recientemente Aprobada en la Conferencia Diplomática de Dublín y su 

Aplicación Provisional [Text of the Accord that Approves a Unilateral Moratorium Related to Cluster Munitions and 

Boosts the Process of Signature and Ratification of the Convention on Cluster Munitions Recently Approved in the 

Diplomatic Dublin Conference and Its Provisional Application], approved July 11, 2008, Anexo 1, at 8, 

http://archives.the-monitor.org/cm/2009/countries/pdf/Spain%20MFA%20Cluster%20Response%204.2009.pdf, 

archived at https://perma.cc/22AC-CPVF. 

9 Press Release, Ministerio de Defensa, España Habrá Desactivado sus Bombas Racimo en Siete Meses (Dec. 2, 

2008), http://www.defensa.gob.es/gabinete/notasPrensa/2008/12/notaPrensa_11845.html, archived at

https://perma.cc/PFA9-UVQS. 

10 LANDMINES AND CLUSTER MUNITION MONITOR, supra note 4.

11 Id. 

12 Id. n.44.

13 BBVA y Santander invirtieron más de 4.000 millones de euros en armas entre 2011 y 2016 [BBVA and Santander 

Invested More than 4,000 Million Euros in Arms Between 2011 and 2016], BEZ (July 24, 2016), http://www.bez.es/ 

82793197/BBVA-y-Santander-invirtieron-mas-de-.000-millones-de-euros-en-armas-entre-2011-y-2016.html, 

archived at https://perma.cc/SC6H-QTEP. 
Laws Prohibiting Investments in Controversial Weapons: Spain

The Law Library of Congress 17

IV. Enforcement

Violations of the prohibition on use, development, production, sale, and stockpiling of prohibited 

weapons are sanctioned according to the Penal Code14 with five to ten years of imprisonment.15 

Participation or assistance with carrying out the forbidden activities are sanctioned with 

imprisonment for three to five years.16 However, the Penal Code does not provide for specific 

criminal sanctions applicable to the financing or advertising of prohibited weapons. 

The Ministry of Defense is involved in implementation of the Law but does not have specific 

oversight authority. The Ministry of Industry, Tourism and Commerce is authorized to take the 

necessary measures to implement the prohibition on importing, exporting, and introducing 

cluster munitions under the Convention, according to an agreement reached between the 

Ministries of Foreign Affairs; Defense; and Industry, Tourism and Commerce and submitted to 

the Acuerdo de Ministros of July 8, 2008.17

14 Ley Orgánica 10/1995, CÓDIGO PENAL [Organic Law 10/1995, PENAL CODE], Nov. 23, 1995, B.O.E., Nov. 24, 

1995, http://www.boe.es/buscar/act.php?id=BOE-A-1995-25444&tn=1&p=20150428&vd=#a563, archived at

https://perma.cc/YWZ7-6YW9. 

15 Id. art. 566.

16 Id.

17 LANDMINES AND CLUSTER MUNITION MONITOR, supra note 4. 
The Law Library of Congress 18

Switzerland

Jenny Gesley

Foreign Law Specialist

I. Legal Framework

In Switzerland, the prohibition of investment in “prohibited war materials” is codified in the War 

Material Act.1 “War materials” are defined as weapons, weapons systems, munitions, and 

military explosives, as well as dual-use equipment.2 The annex to the War Material Ordinance 

contains a list of materials designated as war materials by the Federal Council, the Swiss 

government.3

 “Prohibited war materials” are nuclear, biological, or chemical weapons, antipersonnel mines, and cluster munitions.4

 

The Act prohibits the direct financing of the development, manufacture, or acquisition of 

prohibited war material as well as the indirect financing if the indirect financing is used to 

circumvent the prohibition on direct financing.5 “Direct financing” is defined as the “direct 

granting of credits, loans or gifts, or comparable financial advantages.”6 The participation in 

companies that develop, manufacture, or acquire prohibited war material or the acquisition of 

debt securities or other investment products issued by such companies qualifies as “indirect 

financing.”7 The prohibitions on direct and indirect financing are criminal law norms and 

therefore require intent to be fulfilled.8

 Only direct intent is relevant; merely accepting the 

possibility of violating the prohibitions on financing under articles 8b or 8c is not enough.9

Anyone who intentionally violates the prohibition of financing and cannot claim an exemption is 

liable to a custodial sentence not exceeding five years or to a monetary penalty.10

1 Bundesgesetz über das Kriegsmaterial (Kriegsmaterialgesetz, KMG) [War Material Act], Dec. 13, 1996, 

SYSTEMATISCHE RECHTSSAMMLUNG [SR] [SYSTEMATIC COLLECTION OF LAWS] 514.51, https://www.admin.ch/opc/ 

de/classified-compilation/19960753/201302010000/514.51.pdf, archived at http://perma.cc/2E49-3K33, unofficial 

English translation available at https://www.admin.ch/opc/en/classified-compilation/19960753/2013020 

10000/514.51.pdf, archived at http://perma.cc/G49X-BDXT. 

2 Id. art. 5, para. 1.

3 Verordnung über das Kriegsmaterial (Kriegsmaterialverordnung, KMV) [War Material Ordinance], SR 514.511, 

https://www.admin.ch/opc/de/classified-compilation/19980112/201510010000/514.511.pdf, archived at 

http://perma.cc/5H2J-2J57, unofficial English translation available at https://www.admin.ch/opc/en/classifiedcompilation/19980112/201510010000/514.511.pdf, archived at http://perma.cc/GMT2-A3TU. 

4 War Materials Act arts. 7, 8, 8a.

5 Id. arts. 8b, 8c.

6 Id. art. 8b, para. 2. 

7 Id. art. 8c, para. 2.

8 Id. art. 35b.

9 Id. art. 35b, para. 3.

10 Id. art. 35b, para. 1.
Laws Prohibiting Investments in Controversial Weapons: Switzerland

The Law Library of Congress 19

The law is overseen by the State Secretariat for Economic Affairs (Staatssekretariat für 

Wirtschaft, SECO), which forms part of the Federal Department of Economic Affairs, Education 

and Research.

11 No governmental lists could be located that provide for covered companies. 

II. Deterrent Effect of the Law

The prohibitions on direct and indirect financing entered into force on February 1, 2013.12 The 

nongovernmental organization Business and Human Rights Conform (BHRC) stated in a 2015 

report that investments by Swiss financial institutions in nuclear-weapon-producing companies

have not declined since the amendment entered into force, but have actually increased.13 

11 War Materials Ordinance art. 13.

12 Bundesgesetz über das Kriegsmaterial (Kriegsmaterialgesetz, KMG). Änderung vom 16. März 2012 [War 

Materials Act. Amendment of March 16, 2012], AMTLICHE SAMMLUNG DES BUNDESRECHTS [AS] [OFFICIAL 

COMPILATION OF FEDERAL LAWS] 295, 299 (2013), No. III, https://www.admin.ch/opc/de/officialcompilation/2013/295.pdf, archived at http://perma.cc/67DW-AR6G. 

13 BHRC, DAS SCHWEIZERISCHE FINANZIERUNGSVERBOT VON KERNWAFFEN IM KMG [THE SWISS PROHIBITION ON 

THE FINANCING OF NUCLEAR WEAPONS IN THE WAR MATERIAL ACT] 4 (Nov. 2015), http://bhrc.ch/wpcontent/uploads/2015/11/Publikation_BHRC_2015_final.pdf, archived at http://perma.cc/743D-49H8.