Signatory Represents Legal Person in Qualified Certificate
A recent development has seen a signatory representing a legal person enter their details as an attribute in a qualified certificate, as per Article 5, Paragraph 1(d) of the Signature Act. Additionally, the certificate must not be older than 12 months.
Business Profile Requirements
According to Article 20 of the Act, a business profile is required to contain specific information about:
- Contracting party and beneficial owner
- Authorized agents
- Economic background
- Profession
- Intended use of assets
The level of detail in this information will depend on the risk involved in the business relationship.
Risk-Adequate Monitoring of Business Relationships
Article 21 requires computerized systems to be used for risk-adequate monitoring of business relationships whenever possible and cost-effective. If a person subject to due diligence does not use a computerized system, they must employ another suitable risk management method.
Clarifications and Enhanced Due Diligence Obligations
Simple clarifications are required to assess the plausibility of unusual circumstances or transactions that deviate from the business profile. Special clarifications may be necessary to dispel suspicions arising from certain situations.
Higher-Risk Transactions and Delegation of Due Diligence Obligations
Transactions involving higher risks, as defined by Article 11(1), require specific criteria and measures, including:
- Verifying the identity of contracting parties
- Clarifying asset origin and intended use
- More intense monitoring
Delegation of due diligence obligations is also possible under certain circumstances.
Risk Countries and Global Monitoring
Countries with inadequate measures to combat money laundering and terrorist financing are listed in Annex 2. Transactions with contracting parties or beneficial owners from these countries will be subject to more intensive monitoring. Additionally, transactions with a value of CHF 15,000 or more will also require closer scrutiny.
Conclusion
In conclusion, the recent development in qualified certificates highlights the importance of maintaining accurate business profiles and conducting risk-adequate monitoring of business relationships. The requirement for enhanced due diligence obligations and global monitoring underscores the need for financial institutions to remain vigilant in their efforts to combat money laundering and terrorist financing.