Financial Crime World

Swiss Banking Secrets Unveiled: The Implementation of Know-Your-Customer (KYC) Regulations in Switzerland

Swiss banks, known for their secrecy and attracting wealth from around the world, are subject to stricter regulations to ensure compliance with international laws and regulatory frameworks. Switzerland’s financial sector, a hub for global finance and banking, is now implementing Know-Your-Customer (KYC) regulations.

Switzerland: A Tax Haven and a Hub for Global Finance

Switzerland, renowned for cheese, chocolates, and luxury watches, also houses some of the world’s wealthiest individuals and corporations. Despite its reputation for discretion and financial confidentiality, the country’s financial sector is under the scrutiny of KYC regulations.

Key Players in Swiss KYC

  • The Financial Action Task Force (FATF): An international organization establishing KYC and Anti-Money Laundering (AML) standards
  • Swiss Financial Market Supervisory Authority (FINMA): Responsible for regulating financial institutions and markets in Switzerland

Standard KYC Requirements in Switzerland

KYC process in Switzerland follows FATF recommendations. requirements for both individual and corporate clients include:

For individuals:

  • Identity documents (ID or passport)
  • Proof of nationality

For corporations:

  • Registered office in Switzerland
  • Commercial register
  • Ultimate Beneficial Owner (UBO) information

Swiss KYC in Crypto Space

Switzerland treats virtual assets, like cryptocurrencies, as legal transactions if they’re licensed and regulated by FINMA. Virtual Asset Service Providers (VASPs) are required to obtain Personally Identifiable Information(PII) for clients:

  • Client’s name
  • Client’s account number or reference number for transaction
  • Client’s address, date, and place of birth, client number, or national ID number
  • Beneficiary’s name
  • Beneficiary’s address

Staying Ahead of the Curve

As regulations evolve, it is crucial for financial institutions and individuals to remain informed. Swiss-based financial institutions have adopted online identity verification for due diligence. To combat risks, FATF advises seeking assurance from reputable expert bodies.

Financial institutions can also benefit from numerous KYC, AML, and compliance software programs and tools developed by private companies.

At Bolder Group, we help clients navigate KYC requirements in Switzerland with our expertise in fund administration and compliance solutions. Contact us to learn more.