Financial Crime World

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Switzerland Steps Up Anti-Money Laundering Efforts: Know Your Customer Requirements Take Center Stage

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Switzerland, known for its secretive and luxurious financial landscape, is taking steps to ensure compliance with international laws and regulatory frameworks. The country is implementing stricter anti-money laundering regulations, with a focus on “know your customer” (KYC) requirements.

FATF’s Role in Shaping Regulations

The Financial Action Task Force (FATF), an international financial watchdog, plays a significant role in shaping Switzerland’s anti-money laundering regulations. FATF evaluates the measures of jurisdictions, including Switzerland, to prevent organized economic crime, such as money laundering, corruption, and terrorist financing.

FINMA’s Role in Regulating Financial Markets

Switzerland’s FINMA (Financial Market Supervisory Authority) closely follows FATF recommendations. As a private entity, FINMA works with the government to ensure that financial regulations are properly enforced. The authority regulates on a country level, whereas FATF operates internationally.

Standard KYC Requirements in Switzerland

For individuals and entities, the initial requirements for KYC processes in Switzerland include:

  • Identity documents such as an ID or passport
  • Proof of nationality
  • Professional photo
  • Name of birth
  • Date of birth
  • Address
  • Nationality
  • Identity documents like an ID or passport (for international persons)

For corporate entities, additional requirements include:

  • Registered office in Switzerland
  • Commercial register
  • UBO (Ultimate Beneficial Owner)
  • Related transactions and activities

Note that these may not be the exact requirements, and the necessary documents may differ depending on the case or conditions.

KYC in Switzerland: The Crypto Perspective

Virtual assets like cryptocurrencies are legal in Switzerland, but only if licensed and regulated by FINMA. These crypto transactions are done via VASPs (Virtual Asset Service Providers), which must provide Personally Identifiable Information (PII) of customers involved in crypto transactions.

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

To combat deepfake technology, financial institutions must ensure a secure online ID verification process. The FATF recommends seeking assurance through testing and certification by government-approved bodies or reputable expert organizations.

KYC Compliance Tools and Software

Many KYC, AML, and compliance software programs are available to financial institutions. These tools can help medium to large-scale banks, legal services providers, fund managers, and administrators streamline their compliance processes.

Conclusion

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At Bolder Group, we stay informed about the latest regulations and trends in the financial world. With our expertise in fund administration, governance, and compliance solutions, we can assist you in meeting your KYC requirements in Switzerland. Contact us to learn more about how we can help you navigate the complex landscape of anti-money laundering regulations.