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Anti-Money Laundering Requirements: Who is Subject and What Are Their Obligations?

Overview

Anti-money laundering (AML) requirements apply to various financial institutions and non-financial businesses and professions. This article outlines who is subject to AML requirements, the differences in their obligations, and what types of payments or money transmission activities are subject to these regulations.

Who is Subject to Anti-Money Laundering Requirements?

The following persons are subject to AML requirements:

  • Banks and Investment Firms: These institutions must comply with all AML regulations.
  • E-money Businesses: E-money businesses, such as those that issue e-wallets or mobile payment services, are also subject to AML requirements.
  • Undertakings for Collective Investment: Companies that market their unit certificates or units are subject to AML regulations.
  • Insurance Undertakings: Insurance companies must comply with AML requirements, including identification and verification of customers.
  • Liechtensteinische Post Aktiengesellschaft: This company is subject to AML requirements for its activities related to money transfer and financial services.
  • Exchange Offices: Exchange offices, including those that provide foreign exchange services, are subject to AML regulations.
  • Insurance Brokers: Insurance brokers must comply with AML requirements, including identification and verification of customers.
  • Payment Service Providers: Companies that provide payment services, such as online payment processors, are subject to AML requirements.
  • Asset Management Companies: Asset management companies must comply with AML regulations, including identification and verification of clients.
  • Lawyers and Law Firms: Lawyers and law firms that provide tax advice or assist in the planning and execution of financial or real estate transactions are subject to AML requirements.
  • Tax Consultancy Professions and External Bookkeepers: Tax consultants and external bookkeepers must comply with AML regulations, including identification and verification of clients.
  • Real Estate Agents: Real estate agents who facilitate transactions involving cash or crypto-assets worth CHF 10,000 or more are subject to AML requirements.
  • Crypto-Asset Service Providers: Companies that provide services related to cryptocurrencies, such as token issuers, depositaries, exchange service providers, and trading platform operators, are subject to AML regulations.

Duties of Persons Subject to Anti-Money Laundering Requirements

Persons subject to AML requirements must perform the following duties:

  • Identification and Verification of Customers: Identify and verify the identity of customers, including beneficial owners.
  • Establishment of a Business Profile: Establish a business profile for each customer, including information about their financial history and transactions.
  • Supervision of Business Relationships: Supervise business relationships at a level commensurate with the risk.

Types of Payments or Money Transmission Activities Subject to Anti-Money Laundering Requirements

Pursuant to Art. 9 SPG, persons subject to AML requirements must conduct timely and risk-adequate monitoring of their business relationships, including transactions processed during the business relationship. This includes:

  • Monitoring for Suspicious Activity: Be alert to changes in customer behavior or deviations from typical behavioral patterns.
  • Conducting Investigations: Carry out simple investigations with reasonable effort when circumstances arise or transactions take place that deviate from the business profile.
  • Special Investigations: Conduct special investigations when circumstances arise or transactions take place that give rise to suspicion of money laundering, predicate offenses of money laundering, organized crime, or terror financing.