Financial Crime World

Anti-Money Laundering (AML) Requirements for Financial Institutions and Non-Financial Businesses

Scope of AML Requirements

The following financial institutions and non-financial businesses and professions are subject to anti-money laundering (AML) requirements:

Financial Institutions

  • Banks and investment firms
  • E-money businesses
  • Undertakings for collective investment that market their unit certificates or units
  • Insurance undertakings
  • Exchange offices
  • Payment service providers
  • Asset management companies

Non-Financial Businesses and Professions

  • Lawyers and law firms that provide tax advice or assist in the planning and execution of financial or real estate transactions
  • Members of tax consultancy professions and external bookkeepers
  • Real estate agents
  • Persons trading in goods who receive payments in cash or by means of a crypto-asset (amounting to CHF 10,000 or more)
  • TT service providers (token issuers, depositaries, exchange service providers, token loan companies, trading platform operators, administrators for crypto-assets, and transfer service providers) and TT Agents
  • Operators of trading platforms for non-fungible tokens
  • Persons trading or acting as intermediaries in the trade of artworks (transactions amounting to CHF 10,000 or more)
  • Persons who hold third-party assets in safe custody on a professional basis and rent out premises and containers for the safekeeping of valuables.

AML Duties

These entities must perform various duties to prevent money laundering, including:

Identification and Verification

  • Identification and verification of the identity of the contracting party
  • Identification and verification of the identity of the beneficial owner
  • Identification and verification of the identity of the recipient of distributions from legal entities established on a discretionary basis, and the beneficiary of life assurance policies and other insurances with investment-related objectives

Business Profile

  • Establishment of a business profile
  • Supervision of business relationships at a level that is commensurate with the risk

Exceptions to AML Requirements

The text does not provide specific information about exceptions to these requirements. However, it mentions that persons subject to DDOs must be alert to changes in the customer’s behavior or deviations from typical behavioral patterns and actively inquire into such changes related to the information in the business profile.