Anti-Money Laundering and Combating Terrorism Financing: Identification and Verification of Contracting Parties and Beneficial Owners

General Requirements

The ordinance on anti-money laundering and combating terrorism financing sets forth general requirements for persons subject to due diligence, such as banks, financial institutions, and other professionals. These requirements include:

• Identification and verification: Persons subject to due diligence must identify and verify the identity of contracting parties and beneficial owners through risk-based and adequate measures.
• Document probative value: Identification and verification must be done using documents with probative value.

Identification and Verification of Contracting Parties

To ensure compliance, persons subject to due diligence must:

1. Identify Contracting Parties

Identify the contracting party by means of documents with probative value (Art. 6).

2. Verify Contracting Party Identity

Verify the identity of the contracting party by repeating identification and verification if doubts arise during the business relationship.

3. Follow Further Details Specified by Ordinance

Adhere to further details specified by ordinance for a comprehensive approach to identification and verification.

Identification and Verification of Beneficial Owners

For beneficial owners, persons subject to due diligence must:

1. Identify the Beneficial Owner

Identify the beneficial owner (Art. 7).

2. Verify the Identity of the Beneficial Owner

Verify the identity of the beneficial owner through risk-based and adequate measures, including determining ownership and control structures for legal entities.

3. Repeat Identification and Verification

Repeat identification and verification if doubts arise during the business relationship to maintain accuracy.

4. Obtain Extract from List of Beneficial Owners (Art. 7(3a))

Obtain a corresponding extract from the list of beneficial owners of entities for certain types of businesses.

Specific Requirements

For legal entities organized on a discretionary basis, persons subject to due diligence must:

1. Obtain Information about Individuals

Obtain sufficient information about the individuals in whose interest the entity was established or is primarily operated.

2. Establish and Verify Recipient’s Identity

Establish the identity of the recipient of distributions and verify that identity at the time of paying out (Art. 7a).

Please consult the full text of the ordinance for more detailed information and specific requirements.